Lyft has received a long list of downgrades by institutions overnight. Wells Fargo, Wedbush, Truist, Loop Capital, KeyBanc Capital Markets, JP Morgan, DA Davidson, Citigroup, and Gordon Haskett have all downgraded Lyft.
It’s rare to see so many institutions downgrading a stock all on the same day. That said, yesterday was an earnings day and Lyft had an earnings miss, which is obviously why the downgrade has occurred.
I like Lyft at $10 for investors with a long-term time horizon; however, given the number of downgrades yesterday, this might not be a stock that bounced back immediately. At some point buyers get exhausted and the downgrade is going to leave a strong impression on many sellers.
Lyft has a market cap of 3.76 billion. Its Forward P/E is 11.39. The RSI is 30.00. And the short float is 13.41%. One of the reasons it may not bounce back immediately is because of its -32.90% profit margin.
The site lyft.com gets an estimated 16.8 million monthly views. It’s traffic has slightly increased over the last few months and has been steady for years without any major declines.
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