2023-07-11 07:50:00 ET
While no one can ever be sure how a particular stock will perform in the long run, there are some stocks that have the odds heavily stacked against them. Two such stocks are Lyft (NASDAQ: LYFT) and Fubo (NYSE: FUBO) . Your portfolio will thank you for staying away.
Lyft is the no. 2 player in the U.S. ridesharing market. It generated $1 billion of revenue in the first quarter of 2023 from about 19.5 million active riders. On that revenue, it posted a net loss of $187.6 million.
The company managed to grow revenue by 14% year over year in the first quarter, but that growth came at a cost. Gross margin was 45%, down from nearly 50% in the prior-year period. Lyft attempted to keep operating costs in check, but total costs still rose nearly as fast as revenue. Scale is not helping.
For further details see:
2 Stocks to Avoid Like the Plague