Industry Overview - The global total addressable market (TAM) for ride-sharing is expected to exceed 1.436 billion, with a free cash flow of 5.014 million [6] - Over the last three years, Lyft's shares have declined by approximately 75%, and its price-to-free-cash-flow (P/FCF) multiple is 13.5, significantly lower than Uber's 32.9 [6] - Lyft has shown a notable uptick in rides, bookings, operating margin, and profitability in its most recent earnings report, indicating a turnaround in demand trends [9][10][12] Company Performance: Uber - Uber's revenue for the latest quarter was 1.721 billion and a net income of $1.015 billion [6] - Uber has consistently been profitable on a GAAP basis and has diversified its platform through acquisitions like Drizly and Postmates, enhancing its consumer reach [5][6] Investment Perspective - David Tepper of Appaloosa Management increased his position in Lyft by 1,600%, purchasing 7.5 million shares last quarter, indicating a deep-value investment approach [1][7] - Lyft's stock is seen as a potential call option on broader economic health, with its current valuation considered a bargain in a large and growing market [13] - The recent cooling of inflation and the Federal Reserve's interest rate reduction are positive economic indicators that could support Lyft's growth [8][9]
Billionaire David Tepper Just Increased His Stake in This Ride-Hailing Stock by 1,600%. Time to Buy?