Investing in Lyft
However, before you want to buy Lyft stock you need to know a little more about the company, what are its weaknesses, strengths and above all make sure if it is a good idea to take a good look at Lyft stock market.So, if you want to know a little more about this company’s participation in the stock market, stay with us and continue reading what we have for you below.
What is Lyft?
Lyft is an American company that was founded in 2012 by Logan Green and John Zimmer, in order to offer transportation services through a mobile application.Like companies such as Uber or Cabify, Lyft allows direct contact between cab drivers and their customers, making long and short distance transfers. Lyft currently provides this service to 60 cities in the United States and since 2017 there has been an official branch in Canada.This company stands out from the rest by offering a friendly service. It may seem a little strange to you, but the truth is that Lyft focuses on its drivers offering a friendly service and the possibility that the traveler chooses to sit in the front seat.Lyft distinguishes itself from other American cars by having a pink mustache on the front of the car. It also offers affordable fares and as a perk for drivers, there is a tipping option where it is the traveler who decides the cost.Its mobile application is quite complete and sophisticated and its founders have successfully positioned their platform.
Why buy Lyft stock?
Lyft Nasdaq began participating in the stock market in the first quarter of 2019. Despite being a company with very little time on the stock exchange, it has had excellent receptivity from its investors.The Lyft share price starts at $72 with the aspiration that it will soon be worth approximately $24 billion.Lyft shares have made extraordinary progress since then and although the company has suffered slight financial imbalances, its revenue for 2020 has been 68% higher than the previous year. Also, Lyft has obtained an increase in cars, by drivers who want to work for the company. Despite the worldwide crisis caused by the coronavirus, Lyft has been popular thanks to its app for customers and drivers, which is now available in the Google and Apple stores.Buying Lyft Shares: Advantages
- Low rate. Lyft’s share price currently stands at $44.69. This is an advantage for investors who want to buy shares of this company, as low rates tend to rise in the short to medium term.
- Affordable price for entry-level investors. The Lyft stock price is marked below other companies such as Uber or even Coca Cola. For first-time investors this could be a real opportunity since there is less risk of profit loss.
- Commission-free. When you buy Lyft shares you won’t have to deal with extra commissions or per share surcharges.
- Safe and reliable. It is a company that has proven to be reliable and safe when investing in Lyft stock.
Buying Lyft Shares: Disadvantages
- Private company. Like Uber, Lyft is privately held so it does not allow its shares to be purchased by investors outside the company. So who can buy its shares? Its employees and private companies.
- Economic crisis. As we told you, Lyft has billed up to 68% of revenues during the first quarter of the year and has had an increase in drivers. However, the company has had difficulties in obtaining stable revenues.
- Lyft stock price. The fact that Lyft stock is at a low percentage is also a disadvantage and the reason is because it may remain at a low percentage for a long time without the possibility of generating high profits.
If you want to know how to buy from Lyft, you should keep in mind that for Lyft purchase action is only valid for employees of this company and for other companies, so it is not possible for other users to buy directly.Why? Well the reason is that Lyft left the stock market in March 2020, for not being profitable for the company itself and on the contrary generating debts. Now, if you meet the company’s requirements, it is advisable to buy its shares on eToro or ForexTB.In this case, we recommend that you follow these steps:
- Register with the broker of your choice, verify your profile and log in.
- Locate the search engine and enter: Lyft.
- You will see interesting information about the company, such as the value of Lyft shares, for example.
- Once you know how much a share of Lyft stock is worth, enter the number of shares you want to buy and click on the ”invest” button.
- Wait for confirmation that your transaction has been completed and you’re done, it’s that easy to buy shares in Lyft!