Lyft (NASDAQ: LYFT) stock encountered a rapid change of -7.41% in the last hour of Friday’s trading session. The stock settled the final trade on $51.09. A fare war between Uber and Lyft has led to billions of dollars in losses for both ride-hailing companies as they fight for passengers and drivers.
But in one way it has been good for shareholders who snatched up the newly public companies’ stock: The losses have scared off the competition, giving the leaders a duopoly in almost every American city.
The two San Francisco companies have already lost a combined $13 billion. And with no clear road to profits ahead, no one else has much of an incentive to mount a challenge using the same model relying on people driving their own cars to pick up passengers that summon them on a smartphone app, said Susan Shaheen, co-director of the Transportation Sustainability Research Center at the University of California, Berkeley.
Even if another rival dared enter the market, it would likely be difficult to raise enough money to pose a viable threat after Uber and Lyft spent the past decade pulling in billions of dollars from venture capitalists. And in the past six weeks, they raised an additional $10.4 billion in their recently accomplished initial public offerings of stock.
“There’s only a duopoly because both companies have enough capital to compete with each other and no one else does,” said Gartner analyst Michael Ramsey.
Analysts consider this stock active, since it switched over with 23,111,232 shares as compared to its average volume of 13.99M shares. The Average Daily Trading Volume (ADTV) demonstrates trading activity related to the liquidity of the security. When Ave Volume tends to increase, it shows enhanced liquidity. But when Ave Volume is lower, the security will tend to be cheap as people are not as keen to purchase it. Hence, it might have an effect on the worth of the security.
The stock has turned around N/A yearly, so it gives a chance to investors, traders, shareholders and stakeholders to take a look at the complete situation of the market. The stock has come back -18.27% weekly shift, because it was maintained at -15.02% in the one month period. Hence, this depicts the stock’s weekly as well as monthly performance. The market capitalization of the corporation settled $15.77B whereas it’s P/B Ratio was N/A. By using the P/B Ratio methodology, you can compare the value of stock market to its book value. For a smooth stock market functioning, the P/B Ratio must be high and vice versa. Financial investors own 2.00% stake in the business, while Beta Factor, which is generally used to evaluate the riskiness of the security, was moved N/A.
Meanwhile, shares of the company were making trade -13.03% away from the 20-days SMA and -17.93% away from the 200-days SMA. Currently, the stock is trading -42.34% ahead of its 52-week high and -3.20% beyond its 52-week low. In the meantime, the Lyft’s 14-day RSI was settled at N/A.