10 Best NASDAQ Stocks Under $20 to Buy

2. LYFT Inc. (NASDAQ:LYFT)

Number of Hedge Fund Holders In Q2 2024: 53

Share Price: $12.82

LYFT Inc. (NASDAQ:LYFT) is the second biggest ride sharing company in the US after Uber. According to Bloomberg, the firm commanded a 24% share of the US market as of March 2024. Combined with Uber’s 76% share, this means that LYFT Inc. (NASDAQ:LYFT) only has one major rival in the industry. However, the firm’s shares are down 7.6% year to date, for a sharp under performance compared to Uber’s 28.3% gain. This is because while Uber is a diversified business that targets food deliveries, autonomous driving, and other markets, LYFT Inc. (NASDAQ:LYFT) has struggled lately. It does not generate a profit, which means that margins are key to the firm’s performance. Additionally, its midpoint bookings guidance for Q3 2024 was $4.05 billion in Q2, which was short of analyst estimates by $100 million. As a result, LYFT Inc. (NASDAQ:LYFT)’s shares dropped by 17% as investors continued to doubt its ability to achieve goals. of $900 million in free cash flow and $1 billion in operating income.

LYFT Inc. (NASDAQ:LYFT)’s management is optimistic about the firm’s ability to target the autonomy wave. Here’s what it shared during the Q2 2024 earnings call:

“We have a leading team and are building the right tools to scale this business. Finally, given recent chatter about autonomous vehicles, I want to spend a few minutes outlining how we think of them. In short, AVs represent an enormous opportunity for Lyft. We believe that the best way for autonomous vehicles to commercialize at real scale and the best way to monetize this technology is through networks where the vehicles can be put to use. Lyft has that network today. To understand why we’re so bullish on AVs, you have to remember that a rideshare network is far more than the app you see. On the demand side, Lyft platform gives access to 40 million riders each year in the U.S. and Canada. And on the supply side, it includes a vast set of capabilities in onboarding individually owned vehicles to our platform, making sure every vehicle and ride are properly insured, and offering customer service when things go wrong at scale.”