Lyft closed on Monday at $12.95. It marked the sixth day in the last few months when Lyft had fallen between $12 and $13.
It seems Lyft won’t fall much further than $12 even if the bear market continues. The reason the indices may not have bottomed out yet is that the individual companies than make up the index funds each release their earnings on differents days and in different months so it takes time for the overall fund to drop.
However, we have seen Lyft already report earnings when it dropped to its new lows for the year at the start of July. And that’s the same price we have dropped back to recently.
As long as you don’t include the most bearish of investors, most fund managers have said they see the S&P500 falling to around $3,300 at the bottom of the bear market, which isn’t far from where we are today. The S&P closed Monday at $3713.50 but that’s also after a rally of over 2%.
Worst case scenario, I expect Lyft to drop to $10.00 which means there isn’t much risk for those who are investing with at least a one-year time horizon and who believe in an autonomous vehicles future where roads are filled with robotaxi fleets that are rented rather than owned.
Image credit: Lyft
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