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Lyft Gains on Active Rider Growth and Halo Cars Acquisition

Zacks Equity Research

We recently issued an updated report on Lyft, Inc. LYFT. Factors likestrong rise in Active Riders and acquisition of Halo Cars are impressive.

Lyft, which competes with Uber UBER in the ride-hailing market, has been towel served by the growth in Active Riders. Evidently, total revenues soared 68% in 2019 backed by a double digit growth in revenue. With the uptrend in Active Riders anticipated to continue, the company expects first-quarter revenues between $1,055 million and $1,060 million. The top line figure indicates year-over-year surge of 36-37%. The company's decision to stick to the first-quarter 2020 outlook despite coronavirus woes is an added positive.

Lyft, Inc. Price

Lyft, Inc. Price

Lyft, Inc. price | Lyft, Inc. Quote

With each passing day, the market for driverless or self-driving cars is gaining prominence. Lyft aims to become a key player in this space. To this end, on Jun 27, 2019, Lyft announced that it has entered into a partnership with Waymo — a subsidiary of Alphabet. Further, we are positive about the company’s recent acquisition of Halo Cars.

Zacks Rank and Other Stocks to consider

Currently, Lyft sports a Zacks Rank #1 (Strong Buy)

Investors interested in the Zacks Computer and Technology sector may also consider Avid Technology, Inc. AVID and Akamai Technologies, Inc. AKAM. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term (three to five years) expected earnings per share growth rate for Avid Technology  and Akamai Technologies is pegged at 15%and 12%, respectively.

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