1LYFT trade ideas
LYFT before EarningsThis stock is an obvious short at this point. Can't expect good news on earnings release, but beware shorting this stock for one good reason. At these levels the company is an obvious buyout target, which would catapult it towards $50-65 at once. Unusual high volume spikes throughout the years can be detected (with little stock movement), which could indicate 3rd-party interest. But regardless of that, technically the stock is poised to touch down at the lower channel trend line. I like the company, but I don't like their stock.
(analysis posted per request)
LYFTLooks great buy here, better confirmed with Fisher Transform soon about to cross with divergence
Lyft offers Reversal opportunity. ===Long entry above $50 with $56 as possible price target===
RSI bullish.
Volume increasing.
Bullish MA crossing.
Lyft getting the upper hand over UBER in the investor community.
LYFTLYFT’s innovation outlook is neutral based on a current score of 67 out of 99, outperforming sector average. Insiders sentiment is neutral. Over the past 2 quarters LYFT failed to beat earnings estimates. For more analysis and articles visit our website .
$LYFT Breakout! Falling Wedge & Triangle See Chart :) Read callouts for details. Please Like, Comment, and Follow to show you support!
Coiled and Ready to Squeeze - Contrarian Trade I've posted quite a few short trade opportunities lately, but this one is a bullish setup.
With any new post-IPO there can be opportunity to take advantage of wild swings in the first couple months of trading. LYFT (like UBER) went straight into the doghouse with wider than expected losses for the newly minted stock. It's trading ~50% lower than it's all time high (first day of trading). Sometimes with no good news on the horizon, stocks can just drift lower with no catalyst. Eventually, price starts to look appealing and there's divergence in the downward momentum. LYFT looks like a good candidate here to ride it up 20% into the 50s. Daily PSar would confirm breakout, however RSI is already breaking out and MACD is beautifully diverging about to cross. According to WSJ, the stock is shorted at ~14% of the public float and could make a decent short squeeze.
Let's see if LYFT can get some...LIFT!
ARE THE NEW ECONOMY STOCKS FAILING? Hello my friends, there are some of the stock of of the new sharing economy that have lauched their IPO-s this year that are falling into the abyss. The question is why are they going downward ? is the sharing economy overvalued ?
The companies are financially good,and are dominating major sectors of the future economy. so why are they falling ? Well i think the big guys want to buy at a good level so in a way or the other the price for this stocks is going down. So we have to wait and enter when we have a confirmation that the big guys will enter long as well.
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Best Regard from Z.
$LYFT inches to price discovery to the downside Probably gonna follow $UBER. A bounce here would be a good sign though. Lyft has been beating earnings expectations.
Guggenheim Analyst One Step Above Plant LifeI saw where Guggenheim analyst says LYFT will be profitable by 2021 instead of 2023. LYFT will still not be profitable in 2121 let alone 2021.
In all fairness, he is correct if you want to look at LYFT and UBER as technology plays but they are not, they are commodity plays.
A couple of questions for people who think LYFT and UBER raising prices is the cure all
1. Lets assume both raise prices. For the most part (unless you are a Guggenheim Analyst and make great money for being a moron), with the exception of very busy times, people will choose the cheaper option between LYFT and UBER. If you raise the price than you will lose market share to UBER. How long does it take an airline that raises prices to backtrack when nobody else in the industry does so? Try 2-4 days. Raising your pricing is a great idea if it doesn't effect the the volume of riders. But in MOST economic analysis I have seen, when prices go UP, DEMAND goes down. So raising the prices is a non-starter
2. If they UBER and LYFT raise prices than riders will start picking cheaper options like Ride Share and such. I will admit complete ignorance on this as I dont know if this is more profitable for the companies but the drivers love rideshare about as much as I respect the Guggenheim analyst. I know a few folks that drive and even if the app tries to hide that it is a rideshare from the driver, as soon as they can see it is a rideshare they cancel. People who opt for rideshare are very price sensitive and they will not respond well to raising prices. Personally I would rather take a Greyhound across the US than a Rideshare across town. Praising LYFT for raising prices is like giving Kroger a pat on the back for raising prices across the board. That would work until people realized the WalMart across the street had lower prices.
3. Someone seriously needs to explain to me how these companies are going to make money. Autonomous vehicles is NOT the answer because riders will demand lower pricing since the cost per unit is lower. If, by some miracle of miracles, LYFT and UBER were to keep prices at current rates with the lower cost of autonomous cars (see below another reason autonomous cars is a pipe dream), their margins would be very robust. If that is the case how long do you think it will take for the Fords, Chevys, Toyotas, Teslas, etc to enter the market and drive down the cost. NO MATTER YOUR COST BASE IN THIS BUSINESS YOU ARE LOOKING AT A 10% OPERATING MARGIN MAYBE.
A few other points that I think are important to point out since everyone thinks UBER and LYFT are the Bees Knees.
1. How much more can they seriously grow? Traffic congestion in cities where they are major operators is a huge issue. If these companies are going to grow 10-15% a year, where on God's Green Earth are they going to expand? DC? SFO? NYC? How long do you think it will be that SFO, DC and other bastions of liberalism limit the number of drivers each can have in their cities and working out of their airports. At some point, while it will not be a medallion per se, UBER and LYFT are going to be running under a "Restricted Supply" program in almost every major city.
2. The Autonomous Car Solution. Although the pipe dream of expanding margins has already been explained, here is another point. Currently there are roughly 3 Million drivers in the world for UBER and LYFT has about 1.4 Million. UBER is stronger internationally (in especially non-congested cities like London, Sao Paolo, etc) so lets just say 1 Million UBER drivers are US based and LYFT has 750K in the US. So, if these companies go autonomous they are going to displace over 1.5Million drivers in the US? Anyone care to bet the odds of that happening? We all know an airplane can fly itself but there are still two pilots so my guess is that all autonomous cars will be required to have a driver there as a "back up". So instead of saving money, the autonomous car would cost the same or more. We are a LONG WAY OFF from letting the roads run free with autonomous cars and trucks. The technology may be there in the next few years but it isnt going to happen in the real world.
The only positive thing I will say about LYFT is that UBER's market cap should be much closer to LYFT's $15B than its current $50B. If you love LYFT and UBER, I have some shares in ETOYS I would like to sell you as well.
Enron was a killer buy at $5/Share - that didnt turn out too well either. Any one who says a company is cheap at $50B that has over a Billion in losses shouldnt be legally allowed to drive for one of these two companies because I doubt they have the ability to feed themselves let alone drive a car.
LYFT Poised for Move Down TuesdayLooking at current 15 minute LYFT chart it appears to me that LYFT is in for a down day tomorrow as there is a decent divergence with RSI. I would rather see it rally a bit so I could close CALL portion but it appears that will not happen.
Personally I think the rally today was based on a pipe dream of raising prices. I mean raising prices in a commodity business always works.
Short Term Long Straddles LYFTI’m of the belief that the business model for Uber and Lyft long term is on with very thin margins and is a commoditized product. Eventually these two companies will stop marketing themselves as unique businesses and improve margins. However, as Ivan Feinseth of Tigress pointed out, as economy gets worse more riders could become drivers; therefore eroding demand and increasing supply. Lastly, the idea that “autonomous” vehicles will solve their margin is pure fantasy unless you believe Uber and Lyft aren’t comodotized. I can explain more on that later.
With that I opened a long straddle on LYFT AT 49 with 8.31.19 x date. I believe much of of the selling was due to the following:
1. Locked in owners selling Friday after the anticipated after lock down bounce was so short lived. Especially when one looks at UBER trading about 10% below their previous “holding low” while Lyft just broke their previous low Friday. If downward trend continues you could very easily see Lyft @ $40 within 2 weeks.
On the flip side, if Lyft stabaluzes for the short term one could see a rise to above Friday open by mid week. Either way the Straddle, while not killing it should return a handsome ROI by Thursday
Lyft amazing buying opportunityThere is a lot going on in this chart but there are a couple things i would like to put an emphasis on for Lyft. First, notice that we are in a massive falling wedge structure, generally indicating a breakout upwards. Second, notice the red line i have drawn at the bottom of this descending wedge. This red line could be considered a major support level, as it acted as both support and resistance back in May. Third, notice the MASSIVE bullish divergence on the 4hr RSI. Finally, notice that the fib retracement .786 level matches up in confluence with the red line major support I have drawn. All in all, I think it is safe to say we will be seeing a larger reversal for Lyft in the coming weeks. Don't miss out on this amazing opportunity.
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Lyft potential long from supply areaTarget 1: 58s
Target 2: 61s
Stoploss: 46s
Reward/Risk: 1.3-1.93
I might be looking to dollar cost average around the stop loss level. When the market is so weak like it is supply and demand levels tend to react aggressively.
