00:00 Time for topping the tape.
00:01 Shares of Lyft zooming nearly 17% higher today.
00:05 That's the biggest gain since November 2020.
00:07 The odd thing about today's surge is that
00:09 there doesn't seem to be any real catalyst.
00:11 We didn't see a street upgrade.
00:12 We didn't see any market moving news.
00:14 Worth noting, the stock is still 60% lower this year.
00:19 Tim, you've said before you like Lyft over Uber.
00:22 Here we are.
00:23 Well, I like it on a relative value trade,
00:25 and I've historically liked Uber over Lyft,
00:27 and I'm not just conveniently now flipping
00:29 and said I got this trade totally right.
00:31 I mean, you've lost a lot of money in both stocks,
00:32 but if you look at Uber versus Lyft,
00:34 it's outperformed by 60% in the last six months.
00:37 It's outperformed by 35% in the last three months,
00:39 and some of the updates we've gotten from Lyft lately
00:41 indicate that their third quarter
00:43 is off to a pretty good start.
00:44 You're also seeing a better balance
00:45 and availability on the driver's side,
00:47 although ASPs have fallen.
00:48 Some of their cost base is changing,
00:51 and so this is the dynamic that the street wants to hear.
00:53 I just look at the relative value here.
00:55 I'll tell you what, I would like to own both companies,
00:58 but at this point, owning Lyft to me
00:59 is the better place to be.
01:00 - Dan, you just bought some Lyft.
01:02 - Yeah, I did last week, and here's the thing.
01:06 I agree with everything Tim just said here.
01:08 Another theme out here is autonomous driving, right?
01:11 And Waymo, which is an Alphabet company,
01:14 has a stake in Lyft.
01:15 They have a partnership as they work
01:17 towards autonomous robo-taxis and the like,
01:20 and so what I'm trying to do is sift through
01:22 some of these names right here
01:23 where the baby's been thrown out with the bathwater
01:25 a little bit.
01:26 When I bought this stock last week,
01:28 I mean, they had 50% of their market cap in cash.
01:31 Now, the stock is obviously up 20-some percent
01:33 in that period of time,
01:34 but I think their balance sheet is okay.
01:36 On an adjusted basis, they're making money.
01:38 I know that there's plenty of things
01:39 to kind of shake a stick at
01:41 when you want to talk about a company like this
01:43 as making money on an adjusted basis here,
01:46 but I just think it's a bit washed out here.
01:47 So I went into this as an investment,
01:49 but trust me, people,
01:50 these sorts of things can turn into trades,
01:52 especially if you get big moves this quickly.
01:55 - It just did, so is it?
01:56 - No, I mean, let's see if I get a two-handle on it.
02:01 Here's the deal, Mel.
02:02 You know, they're supposed to have 20% revenue growth
02:05 for the next couple years coming off a very low base.
02:07 I look at a name like this, clearly an acquisition target.
02:10 I know that there's a lot of areas
02:11 where the regulators are not gonna allow acquisitions.
02:14 I don't think this is a space
02:16 where that's gonna be the case.
02:17 Could Waymo buy a company like this in a heartbeat
02:20 for like a $10 billion enterprise value?
02:21 Be a rounding error.
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