5 Stocks Reddit’s WallStreetBets is Buying Before Earnings

3. Lyft, Inc. (NASDAQ: LYFT)

Number of Hedge Fund Holders: 60 

Lyft, Inc. (NASDAQ: LYFT) operates as a ridesharing company offering services primarily in the United States and Canada. It is ranked third on our list of 10 stocks Reddit’s WallStreetBets is buying before earnings. In earnings results for the first quarter, the company missed market expectations on earnings per share but beat them on revenue. It is expected to announce the second quarter results after the close of market on August 3. The company has a market cap of more than $18 billion and posted more than $2.3 billion in revenue last year. 

On July 21, investment advisory DA Davidson assumed coverage of Lyft, Inc. (NASDAQ: LYFT) stock with a Buy rating and a price target of $25, underlining that the firm would benefit from the long-term growth in the ride sharing business. 

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Alkeon Capital Management is a leading shareholder in Lyft, Inc. (NASDAQ: LYFT) with 5 million shares worth more than $321 million. 

In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Lyft, Inc. (NASDAQ: LYFT) was one of them. Here is what the fund said:

“New purchase Lyft, the No. 2 U.S. rideshare operator, is exclusively focused on the secular growth opportunity in the rideshare market and stands to be a direct economic reopening beneficiary. The company made tremendous progress on margins during 2020 and improved its ability to meet long-term targets. Lyft is also leveraged to the eventual transition to autonomous driving.”