Lyft is set to report earnings Tuesday following its splashy initial public offering, but past tech IPOs suggest the ride may not be smooth, experts say.
That means Lyft's first pass at impressing Wall Street may not go too well, despite the fact that most analysts have rated the stock positively, with 15 "buy," eight "hold" and only two "sell" ratings.
"This is a big opportunity for these companies, right out of the gate, soon after they just did their IPO roadshow, to tell investors how they're doing as publicly traded companies," Nathan said. "With 44% short interest, I suspect good news in this name could cause a little bit of a short squeeze. But [it's a] really tough name to play with options directionally, with implied volatility [and] the price of options as high as it is right now.
And, if you ask Seymour Asset Management founder and Chief Investment Officer Tim Seymour, an upside surprise isn't a long shot for Lyft. "This [stock] is down 20% into those numbers, so it's a case of where you actually think there may be even a chance for these guys to give you a little bit of an upside surprise," he said on "Options Action." "But the bottom line is: Expecting companies who are fresh out of the gates to be flawless on their earnings call is, I think, a tall order, even though I think there's a lot of bad news in this stock.
Private Advisor Group's Guy Adami also tentatively put himself in the "bull camp," noting that while Facebook's first earnings report hurt its stock, things "worked out pretty well" for the social media giant over the long term."I was wrong on this," he said. "I thought there'd be a window where you could buy Lyft before Uber['s] roadshow went, before the earnings. Now, I think you need to stay away.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Lyft Earnings: What to WatchLyft has a lot riding on the number of so-called active riders who regularly use its services—and for that matter, how much it can make from each of them
Read more »
Uber, Lyft drivers plan to strike ahead of Uber’s IPODrivers are calling for better job security, a livable income and a cap on the ride-hailing companies’ commission.
Read more »
Uber and Lyft drivers are planning to strike this week, and it highlights the challenge the 2 ride-hailing giants face as public companiesUber and Lyft are still fighting tooth and nail for market share in the United States.
Read more »
American Express relaunches Blue Cash Preferred credit card — with cashback for Netflix, Amazon, Lyft and UberCard holders will earn cash back on new categories, including streaming services.
Read more »
Lyft elevates GM first-quarter profit, pickups in driver's seatGeneral Motors Co on Tuesday reported a higher-than-expected quarterly profit, l...
Read more »
15 cities where Uber and Lyft drivers make the most moneyUber and Lyft drivers earn the most monthly revenue in San Francisco, New York City, and San Jose, JPMorgan Chase finds.
Read more »
Lyft just lost its lawsuit against New York City's minimum wage rule for driversA judge ruled Wednesday that Lyft and Juno must pay their drivers according to rules set out by the City Council in March.
Read more »
Uber and Lyft drivers reveal the most annoying things that passengers do during ridesBusiness Insider asked dozens of drivers about their biggest pet peeves. Here's what they had to say.
Read more »
Uber is 'totally different' to Lyft, major investor Saudi Arabia says ahead of IPOSaudi Arabia's sovereign wealth fund says Uber is 'totally different' to Lyft despite investor concerns over profitability.
Read more »
Uber and Lyft drivers plan to strike and rally ahead of Uber's IPORideshare drivers are planning to strike and rally again — this time, ahead of Uber's impending IPO
Read more »
Here are the biggest analyst calls of the day: Uber, Lyft, Walmart, Target & moreHere are the biggest calls on Wall Street on Friday
Read more »