LYFT Stock Forecast: Failed proposition 30 catapulted LYFT’s stock price

LYFT Stock Forecast: Failed proposition 30 catapulted LYFT’s stock price

LYFT Stock Forecast: Lyft donated $47.8m for ‘yes’ Campaign fund for Proposition 30.

LYFT Stock Forecast: Latest Price

Lyft Stock Forecast: Performance Chart

Stock Name5 Days1 Month6 Months1 Year
LYFT-22.79%-16.94%-44.00%-80.51%

LYFT Stock: Latest Tweets

LYFT Stock Forecast : Latest news

  1. Alaska Airlines joins hands with Lyft : The partnership amongst these companies will prove to be beneficial for them and for the consumers. These two companies may have unlocked a new source of revenue and indefinitely expanded their market reach because of the services they provide; for instance the mileage plan and the Lyft account can be linked together at alaskalyft.com .
  2. Positive correlation with Uber spotted: As Uber announced strong revenue in its 3rd quarterly earnings report, Lyft’s public sentiments has turned positive. It is natural for the public to expect positive trend from Lyft since its peer company’s earnings report has done so well. Lyft’s 3rd Quarter reports will be out by the next week.
  3. Lyft increased its service fee: Lyft increased its service fee which helps in making up for the insurance costs of drivers. It was reported that they are facing insurance inflation pressures and to balance them, they have increased the service fee. On average, they increased the fee by around 60 cents.
  4. Biden government’s proposal: Biden’s administration has proposed a new rule to consider the workers as full-time employees rather than independent contractors. This would help workers avail their federal labor protections. The stock price fell by around 10% after this proposal.

LYFT Stock Forecast: Price target

 Overall Average$30
 Truist Financial$40
 Morgan Stanley$24
Wells Fargo & Company$42
Atlantic Securities$24
 Deutsche Bank$20

LYFT Stock Forecast: Latest Video

YouTube video

LYFT Stock Forecast: Why has the stock price knocked down since past few days?

Despite of crossing the expectations by reporting adjusted earnings per share of 10 cents when the markets predicted adjusted eps of seven cents; There is a dive of 22.79% bringing the share price from $13.78 to $10.6.

  • Being a major supporter of a greater cause (Proposition 30) – Lyft donated $47.8m for ‘yes’ Campaign fund for Prop 30. If the ballot proposition 30 is passed then California will impose an additional 1.75% tax on income earned above $2m.The total number of tax payers in the bracket rounds up to 43000.  80% of the revenue will be allocated for subsidizing EVs and charging stations and 20% of the amount will be utilized to fight wildfires. However, the governor states “a cynical scheme devised by a single corporation to funnel state income tax revenue to their company.” Insinuating that Lyft will be the sole benefiter of the cause. But it is noteworthy to understand, regardless of Lyft’s position in this ballot, the low income group can only consider to purchase EV car if it is subsidized and priced to the size of their wallets. And this is an essential step to make swifter transition towards zero emission targets.
  • Humdrum increase of ridership in the ride-hailing company – Lyft has the second largest market share in US after Uber.  Positive surprise received in Uber’s earnings report, pegged high expectation from Lyft which was broken when it reported 20.3m active riders whereas Bloomberg estimated 21.1m with the survey of analysts. In the previous year’s same quarters it reported 18.9m riders

LYFT Stock Forecast: Technical Recommendation

Also Read: LUCID Stock Forecast 2022

Lyft Stock Forecast: Quarter 3 results

  • Revenue for 3rd quarter was $1.05 billion, a remarkable growth from 2nd quarter revenue of $990.7 million.
  • It incurred a net loss of $422.2 million with an increase of $45 millions from the previous Quarter valued at a net loss of $377.2 million.
  • Adjusted EBITDA for Q3 was $66.2 million versus $79.1million in 2nd quarter of 2022.  
  •  In Q3 it slightly increased its ridership from 19.8m to 20.3m on Q-o-Q basis.

Nandini Panchal

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

LYFT STOCK FORECAST

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

CrowdWisdom360

CrowdWisdom360

CrowdWisdom360 Admin