Lyft: No Bankruptcy Risk Here
Updated - Dec. 15
Lyft continues to hold the double bottom around $10 despite the massive market sell off. The market keeps forgetting the travel sector was in a recession last couple of years. Demand shouldn't dry up in 2023.
Original article posted on Dec. 14
- Lyft trades at all-time lows as investors misunderstand the financials and assign irrational bankruptcy risk to the company.
- The transportation network is already generating solid adjusted EBITDA profits and should generate operating cash flows soon.
- The stock is cheap at just 4x '23 EBITDA targets.
While Lyft (NASDAQ:LYFT) has fallen to all-time lows, the company has actually started producing solid financial results. The transportation network has returned to pre-covid financial peaks, yet the company is being questioning on solvency providing a clear opportunity for the long term. My investment thesis is Bullish on the strong prospects of the already highly profitable business.
Read the full article on Seeking Alpha.
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