Jim Cramer’s Latest Watchlist: 10 Stock Picks You Need to Know

4. Lyft Inc. (NASDAQ:LYFT)

Number of Hedge Fund Investors: 53

Jim Cramer sees value in Lyft, Inc. (NASDAQ:LYFT) despite its recent struggles. He acknowledges that the stock may have been overpriced at one point, as many investors viewed it as part of a secure duopoly with little risk. However, Cramer now believes that Lyft Inc. (NASDAQ:LYFT) is a good buying opportunity because it is currently trading at a lower price, making it more affordable based on its financial metrics.

“What am I missing with Lyft, Inc. (NASDAQ:LYFT) here? Okay, it got overheated. I think people felt that it was a true duopoly like nothing could go wrong. But I’m with you. I think Lyft, Inc. (NASDAQ:LYFT) should be bought here because it’s now inexpensive, believe it or not, on the numbers.”

Lyft Inc. (NASDAQ:LYFT) stands out as a promising investment due to its strong recent performance and positive future outlook. In Q2 2024, Lyft Inc. (NASDAQ:LYFT) exceeded expectations with earnings of $0.24 per share, beating the forecast of $0.19. Revenue jumped by 40.6% from the previous year to $1.435 billion, thanks to a 10.2% increase in active riders, which now number 23.7 million.

Lyft Inc. (NASDAQ:LYFT)’s gross bookings also grew by 17% year-over-year, reaching $4.018 billion. Lyft’s adjusted EBITDA, a measure of profitability, more than doubled from the previous year to $102.9 million, with a solid margin of 2.6%. Additionally, Lyft Inc. (NASDAQ:LYFT) has strengthened its financial position by reducing long-term debt and increasing cash reserves. Looking ahead, Lyft Inc. (NASDAQ:LYFT) forecasts gross bookings between $4.0 and $4.1 billion for Q3 2024 and expects to achieve positive free cash flow for the year.