Wedbush’s Dan Ives Says He Would ‘Avoid’ Lyft In 2024: ‘You Own Uber. You Put A Red Light In Front Of Lyft’ – Lyft (NASDAQ:LYFT), Uber Technologies (NYSE:UBER)

Lyft Inc, the popular ride-hailing platform, has been deemed the stock to avoid or sell in 2024 by Wedbush analyst Dan Ives. In an interview on CNBC’s Last Call, Ives warned against buying Lyft due to competition from its rival, Uber Technologies Inc, and increased cost-cutting measures.

Ives stated, “You own UBER. You put a red light in front of LYFT.” This statement reflects his belief that Uber is the stronger investment choice in the ride-hailing industry.

Lyft reported a 10% increase in revenue to $1.16 billion in the third quarter of this year. However, its gross bookings of $3.6 billion trailed behind Uber, which reported mobility gross bookings of $17.9 billion, a 31% increase year-on-year. This disparity in numbers indicates that Uber is currently outperforming Lyft in terms of market share and customer demand.

Looking ahead to the fourth quarter, Lyft expects gross bookings of $3.6 billion to $3.7 billion, while Uber anticipates gross bookings of $36.5 billion to $37.5 billion. It’s important to note that Uber’s gross bookings outlook includes its delivery and freight businesses in addition to its mobility services.

Lyft’s shares closed down 3.5% at $14.99 on Friday, reflecting market concerns over its performance. However, the stock has seen a 34.8% increase this year, according to data from Benzinga Pro. In comparison, Uber’s shares rose 142.8% this year, closing at $61.57 on Friday.

The future of mobility is a hot topic in the investment world, and Lyft’s performance is a key factor to consider. As competition intensifies and cost-cutting measures come into play, analysts like Ives are cautioning against investing in Lyft. This analysis highlights the importance of assessing market trends and the competitive landscape when making investment decisions.

In conclusion, Wedbush analyst Dan Ives believes that Lyft is the stock to avoid or sell in 2024. He cites competition from Uber and increased cost-cutting as reasons for this stance. Lyft’s performance in comparison to its rival, as well as its lower gross bookings, are key factors influencing this recommendation. Investors should carefully consider these factors when making decisions in the ride-hailing industry.

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