2024-02-14 15:30:41 ET
Summary
- Lyft's shares have experienced a significant decline in recent years, but the company's revenue has reached an all-time high, growing by 86% in 2023 compared to 2020.
- Despite the decline in share price, Lyft's fundamentals are strong, with improvements in profitability and cash flow.
- Management expects continued growth in rides and gross bookings for the 2024 fiscal year, which could lead to further profitability.
One of the dangers of growth investing is that, eventually, you run a very high risk that the company will fail to live up to expectations. When that does occur, shares can often come tumbling down. A great example of this can be seen by looking at rideshare player Lyft ( LYFT ). As recently as early 2021, shares of the business were trading north of $60 per share. As of the start of this writing, they were down to $12.13, but as of the time of this article's submission they have moved up 31.2% to $15.92. With most stocks, you would expect such a decline to be accompanied by significant fundamental deterioration. But that has not been the case when it comes to Lyft. In fact, with management just reporting financial results for the final quarter of the 2023 fiscal year, the business has officially hit an all-time high when it comes to revenue. For 2023, revenue was actually 86% higher than it was in 2020. Although the bottom line picture for the business has never been great, it has shown improvements for the most part in recent years as well....
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Lyft Roars Higher After Painful Misstatement