Lyft: No Margin Of Safety

Lyft beat ridiculously conservative Q2 guidance.
The actual EBITDA losses continue unabated with forecasts for losing $850 million in 2019.
The contribution margin needs to reach 72% to breakeven due to massive operating expenses.
The market dynamic suggests more competitive as the rideshare companies approach breakeven making Lyft uninvestable.
Lyft (LYFT) reported Q2 numbers that were far better than forecasted due to ridiculous guidance. Unfortunately, the numbers of a key competitor are a harbinger of more pain ahead. The rideshare competitors are still failing to prove how the business model can pay drivers while also undercutting traditional taxi prices and generate a positive return for shareholders. My negative investment thesis is only reinforced by the company's quarterly numbers.
Read the full article on Seeking Alpha. 
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