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Lyft Witnesses Revival in Ride Volumes Amid Coronavirus Woes
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We recently issued an updated report on Lyft, Inc. (LYFT - Free Report) .
Subsequent to easing of coronavirus-led restrictions, Lyft witnessed a significant rebound in ride volumes from the lows in April. Rideshare rides have been improving on a month-on-month basis since May. Notably, rideshare rides soared 78% in July from April. Weekly bike rides surged more than 200% at the end of June from April levels. In the second quarter, bike revenues increased not only quarter over quarter but also on a year-over-year basis.
Thanks to significant cost-cutting measures, the company expects to become profitable in 2021 itself despite 20-25% fewer rides due to coronavirus-led disruptions. Through sustained cost-reduction efforts, it expects to generate $300 million of annualized fixed-cost savings by the end of this year. In order to preserve cash to tackle the challenges, the company plans to reduce capital expenditures significantly. For 2020, capex is expected to be $125 million compared with $150 million anticipated previously, which itself was a reduction from the company’s original capex plan of nearly $400 million for the year.
Amid this downturn in the rides business, total revenues declined 21.2% in the first six months of 2020 due to fall in Active Riders and Revenue per Active Rider. Results reflect a significant downturn in the company’s core ridesharing business, thanks to the quarantine.
Long-term earnings (three to five years) growth rate for Cambium Networks, Etsy and Apple is estimated at 20%, 26.5% and 10.7%, respectively.
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Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Lyft Witnesses Revival in Ride Volumes Amid Coronavirus Woes
We recently issued an updated report on Lyft, Inc. (LYFT - Free Report) .
Subsequent to easing of coronavirus-led restrictions, Lyft witnessed a significant rebound in ride volumes from the lows in April. Rideshare rides have been improving on a month-on-month basis since May. Notably, rideshare rides soared 78% in July from April. Weekly bike rides surged more than 200% at the end of June from April levels. In the second quarter, bike revenues increased not only quarter over quarter but also on a year-over-year basis.
Thanks to significant cost-cutting measures, the company expects to become profitable in 2021 itself despite 20-25% fewer rides due to coronavirus-led disruptions. Through sustained cost-reduction efforts, it expects to generate $300 million of annualized fixed-cost savings by the end of this year. In order to preserve cash to tackle the challenges, the company plans to reduce capital expenditures significantly. For 2020, capex is expected to be $125 million compared with $150 million anticipated previously, which itself was a reduction from the company’s original capex plan of nearly $400 million for the year.
Lyft, Inc. Price
Lyft, Inc. price | Lyft, Inc. Quote
Amid this downturn in the rides business, total revenues declined 21.2% in the first six months of 2020 due to fall in Active Riders and Revenue per Active Rider. Results reflect a significant downturn in the company’s core ridesharing business, thanks to the quarantine.
Zacks Rank & Key Picks
Lyft currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the Zacks Computer and Technology sector are Cambium Networks Corporation (CMBM - Free Report) , Etsy, Inc. (ETSY - Free Report) and Apple Inc. (AAPL - Free Report) . Cambium Networks carries a Zacks Rank #2 (Buy), while Etsy and Apple sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings (three to five years) growth rate for Cambium Networks, Etsy and Apple is estimated at 20%, 26.5% and 10.7%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>