Lyft stock price on 5/13/2023Lyft closed yesterday at $8.42 which is roughly 20 cents above its all-time low which was in mid-March of 2023. It was an obvious buy back then and it’s probably even more of an obvious buy today for those with a long-term investment horizon.

One of the reasons I wasn’t extremely bullish on Lyft back in March when it dropped to $8.22 was because it had very quickly fallen from $18.34. That’s a big drop and when a stock price drops that far, you don’t know if you’re timing the bottom. Now, two months on, we can see that Lyft rose from $8.22 back up to $10.58  where it has consolidated for a couple of months before recently falling back down toward its March lows.

There is a high chance that this ends up as a double bottom for Lyft stock. We have seen resistance at this price in March. If it is a double bottom, it becomes very attractive to buy here for long-term investors if you believe in electric vehicles and driverless electric vehicles.

Many people agree that driverless fleets are likely to be coming. These fleets could be controlled by the manufacturers; Elon Musk has said he will probably join in on creating a fleet. Musk also said that his fleet will compete with companies such as Uber and Lyft. Recently in this bear market, institutional investors have much-preferred investing in Uber over Lyft. But in the long run, both companies are likely to survive and thrive in an EV world with driverless fleets. I don’t have much capital to deploy here but if I did I would put some money on Lyft. Presumably, it bounces well for short to medium-time horizon investors, but in worst case scenario, I’m confident it will rise much higher than its current levels in the long run, making it an attractive buying opportunity for many investors who can afford to lose in the short term.

Lyft has a market cap of 3.94B and an RSI of 35.36. Lyft has a forward P/E ratio of 18.20 and a short float of 15.37%. Institutional ownership stands at 83.90% and insider transactions are down -0.13% over the last 6 months.