12/23/24 - $lyft - Buy $13, impossible to ignore12/23/24 :: VROCKSTAR :: NASDAQ:LYFT
Buy $13, impossible to ignore
- while we all reflect on the year past, it's time to start preparing for the '25 book (and we have been).
- uber remains one of my fav (misunderstood) plays heading into january. but when you look at valuation and recent beats of much smaller competitor, lyft, it's impossible to ignore at these levels. cash generation yield is ~10%.
- possible M&A as well at this valuation ($5 bn), could easily see something like NASDAQ:DASH step up, among others.
- clearly the AV overhang will continue to play a front and center role on the ST dynamics, and while uber is clearly the better platform, i think both will probably trade very close to correlation 1, but lyft's superior valuation and nominal px tag ($13 vs. $60 for uber) mean it's subject to more gamma moves for the tape that's trading.
- so while i own some jan calls (to again avoid the neck out on nominal book... i'm v cash heavy rn about 35% total), i think it's a mistake for my book/ strategy to not play some 10-1 leverage on this esp in the illiquid YE tape (which i believe will be higher).
let's see. merry christmas.
V
