Three, two, one… “Lyft Off!” The Lyft IPO, expected on Friday, March 29, is a “Buy” on iBillionaire. Read why below.
Lyft is the first big unicorn IPO of many in 2019. There are 5 such IPOs coming in 2019 that are so hot they even have their own name: the PULPS, for Pinterest, Uber, Lyft, Postmates, and Slack.
Did you know that you can invest in both Lyft stock and all of the PULPS on iBillionaire?
First, read more below and learn about the reasons for investing. Also, think about the potential risks and your long-term goals, before you make your decision!
Why Lyft Is A Buy On iBillionaire
- Autonomous driving
- Carl Icahn’s investment
- Lyft is undervalued vs. Uber
- By investing you gain first-comer advantage when Lyft IPOs
- On iBillionaire, you just need $5 to buy a fractional share
- It’s already a hit:
- After mere days on its roadshow, Lyft’s IPO is oversubscribed.
- On iBillionaire, our PULPS strategy which invests in Lyft, Uber & 3 other tech companies coming to markets in 2019 already has almost as many investors as Google on iBillionaire.
Why You Should Invest in Lyft
Invest in autonomous driving.
Lyft is partnered with Google’s Waymo, Aaptiv in Vegas, recently acquired Blue Vision Labs, and is developing their own technology as well Strong brand, good corporate culture.
Biggest tech IPO in 2 years
First of the PULPS, a Carl Quintinilla-coined term for the new FAANGs: Postmates, Uber, Lyft, Pinterest, Slack, 5 big tech companies expected to IPO soon in 2019. All have already filed for IPOs.
Experts are already invested in Lyft
Fidelity owns 8% Google’s Waymo recently partnered with Lyft. Google’s CapitalG investment fund invested in 2017, and owns ~5%. Carl Icahn invested $100M in Lyft in 2015, he owns <5%
Should you wait for Uber to invest?
No, because Lyft is growing more. Lyft nearly doubled its share of U.S. rider market since December 2016, from 22% to ~39% in December 2018. Meanwhile, Uber’s share is declining. Lyft’s revenue is also growing faster. Its revenue doubled in 2018; Uber’s revenue growth was only 24% YoY from 2017. Also, 4Q18 quarter revenue growth 14% QoQ versus just 2% for Uber. In addition, Lyft’s gross bookings are growing faster. Lyft gross bookings grew 76% in 2018 vs. Uber’s just 37% YoY. In dollar amounts, Lyft bookings were $8.1B for 2018 versus Uber’s ~$50B, which also includes Uber Eats and Uber Services.
Also, because Carl Icahn chose Lyft over Uber. Icahn in 2015 said that Lyft investment was a “no brainer” because of Lyft’s lower valuation and there being “room for 2.” In 2015 their valuation was $2.5B; Uber’s: $41B, 16X less. Lyft is still 6X less at $120B vs. $20B.
And remember, where Uber has scandals, Lyft has a more positive image. Lyft drivers make more. Lyft has stronger ratings of driver and consumer satisfaction than Uber.
But, you should also invest in Uber, because another expert, Warren Buffett chose Uber over Lyft. He offered Uber $3B in early 2018, but the deal fell apart because of terms & deal size. Also, you should diversify with both companies, because they are competitors, and because they have differences. Lyft is currently razor focused on transportation the U.S. and Canadian market. Uber is world-wide and has the Uber EATS division, it’s investing in flying cars, and more.
Is Lyft overvalued?
Trust the experts. If the most successful investors and hedge fund managers think it’s overvalued, they won’t buy it, or if they already have, they will sell. At iBillionaire, because we have software that tracks their SEC filings, we will know, and so will our investors, because of our automatic PUSH notifications.
For example, Carl Icahn invested $100M at $2.5B valuation in 2015, calling it a “no brainer.” In same year, Lyft operating losses were $360 million, while revenue only ~$200 million. That ratio has reversed to a $911M loss on $2.2B revenue in 2018. Also, Lyft’s losses as a % of revenue decreased in 2018. Remember that everyone said Facebook was overvalued when it IPO’d. Facebook IPO’d at ~$100B with $3B in revenues in previous year. Uber had $11B in 2018. Lyft had $2.2B.
How To Invest in Lyft
- Invest early, on or near IPO date to gain the first comer advantage. Lyft is the first big tech IPO in 2 years, and its IPO was oversubscribed after just 2 days on its roadshow. On iBillionaire, our PULPS strategy which invests in Lyft & 4 other companies coming to public markets in 2019 already has almost as many investors as Google does on iBillionaire. Not to mention, five other recent IPOS we track have doubled the performance of FAANG (+10%) in the past year – they’re up +20%.
- Plan for long-term investment. Lyft is not profitable yet, and estimates say it might have another 2-3 years before it even breaks even. Diversify with other investments, and other big tech companies that are IPOing this year with the iBillionaire PULPS strategy.
- Where To Invest in Lyft: iBillionaire. On iBillionaire you can diversify your investment with less money, because you can invest just $5 in a fractional share of Lyft versus the ~$70 expected full share price on other apps. Plus, with iBillionaire you will know how the smart money is trading PULPS with our hedge fund manager SEC filing tracking software & PUSH notifications. Our PUSH notifications will let you know if hedge fund managers like Carl Icahn sell or buy Lyft. On iBillionaire, you can auto-invest at no extra cost, $5 or more per week or month. With auto-investments, you dollar-cost average automatically, an expert-recommended strategy of reducing your volatility and downside risk, a smart strategy with a riskier stock Auto-investments are also well-suited for a long-term investment like Lyft.
Who Will Invest In Lyft?
Young investors want to invest in brands they like and are young enough to take that risk and invest for the long-term. On iBillionaire, our PULPS strategy already has almost as many investors as Google. Young investors want to invest in things they believe in, like driverless cars and ride-sharing, which are better for the environment. Young investors also have FOMO. They weren’t old enough or didn’t have enough money to invest in the FAANGS before their stocks exploded. Likely, the “search for yield” crowd will also invest. Such investors are currently looking for riskier investments with higher potential upside, as evidenced by the increase in private equity investment and emerging markets.