Lyft gets a flat

[The beef 675] [I'm an image] "Yeah right, like I would ever get into a Lyft driven by a ‘Florida Man’ in a rental car." - Jeff Hey there carnivores, Markets started off hot before slowly dwindling down to small gains for S&P and Nasdaq, and a .002% loss for the Dow Today we’re talking Lyft taking an “L” on earnings. Keep raging, Jeff & Jason [Image] [I'm an image] Flat tire Ride-hailer Lyft is still working on cutting its costs as the company reported quarterly earnings that showed increased revenue but wider than expected losses. Mustache rides aren’t cheap. The mustachio’d digital taxi [reported sales up 52%]( YoY coming in at $1.02B for Q4 and said its number of active daily users is up to 22.9M (must be all the promo rides). However, losses came in at $356M, and now total $2.6B for 2019. In comparison, Lyft had $911M in losses for 2018. But hey, you’ve got to spend money... to spend money, isn’t that how the saying goes? Staying the course Lyft has always insisted it expects to be profitable sometime in late 2021 since IPO'ing last year. Some investors were hoping that Lyft would follow the Batman (Uber) to its ride-hailing Robin and push up its timeline for profitability as well. It did not. As a result, the stock dropped 5.71% in after-hours trading... surge charge not included. CFO Brian Roberts noted that Lyft’s costs, while growing overall, decreased as a percentage of revenue. Lyft already announced it’s plans for layoffs this year and is looking to reduce promotions, so that cost is expected to come down even further. The company [plans to spend only $450M to $490M]( (EBITDA-adjusted) next year, down from $678M this year, mostly on R&D and earmarked $75M for lobbying lawmakers to not f*ck up its whole business model. The bottom line... Lyft’s management made one clear distinction with this report: it is not Uber. That’s a good distinction. Lyft is all in on ride-hailing, and doesn’t have the four extra business segments that Uber has. As a result, they are able to focus on cutting costs and getting profitable in that segment. I get the feeling Uber has more to prove than Lyft, and sitting back might be a good play for the pink squad. In fact, Lyft even [bought a car rental business]( in Florida for $20M so that drivers can drive Lyfts with cars they don’t own. Providing drivers with cars is certainly a way to get more people on the road and pump up those numbers. [I'm an image] Making Your First Million In the Stock Market Is the Always Hardest. Join RagingBull’s Most Profitable Trader—Kyle Dennis As He Invites You to Peak Over His Shoulder For One Full Week [Image] For the First Time Ever Kyle Reveal’s His Step-By-Step Process That Took Him From $15,000 to $7,000,000 By the Age Of 28. [Claim Your Seat]( [I'm an image] ☑️What year is it? After global smartphone sales slid for the second straight year in 2019, Samsung is [unveiling another line of cellies](, and let’s just say they went all 2004 on our asses. The release showcased three variations of the Galaxy Z flip phone, which folds open vertically but is all screen on the inside. This is a change from last year's Galaxy Fold, which opened like a book... and we all know nobody reads those. All three new models dubbed the S20 (10 higher from the S10 from last year! 10!), are 5G compatible, a key feature that Samsung is using to advertise, along with a 100x zoom camera. The phones are set to hit the stores on March 6, for the low, low price of between $1k and $1.4k. Just a bit steeper from the $300 price of the Motorola Razr in 2004. ☑️Cloudy with a chance of cashflow SoundCloud [has received a $75M investment]( from Sirius XM, in exchange for a minority stake and two board seats. The influx in cash will be used for product development and to increase the variety of artist services. Things are trending upward for the ‘Cloud, which was in troubled waters 3 years ago, before receiving a $170M investment from a boutique bank and Singapore investment group. Since then, it hit $127M in sales in 2019 and claims it’s trending toward $200M in revenue for 2020. "Uugghhh, wow, I didn't expect this to blow up. Click my [SoundCloud link](, aha." ☑️Do the splits Wells Fargo is splitting up... it's three existing business units into five. [Hope it doesn't rip its pants](. The wholesale banking unit will be divided into a commercial bank that provides back-end services for companies, and an investment bank that deals with capital markets. Its consumer bank [will be divided]( into two units as well, one that focuses on branches and small businesses, and presumably another that just opens up accounts for people when they don't f*cking want them. Or how about another division just f*cking messes up people’s mortgages and causes their homes to be foreclosed and their families to be kicked out on the streets, huh?! HOW ABOUT THAT?!?! ☑️Not great timing Airbnb racked up quite a bar tab for the first nine months of last year, accumulating a $322M loss through September... which doesn't sound great, and looks even worse when you compare it to the $200M profit from the same period in 2018. This is definitely not a good look since the company is supposedly gearing up for an IPO in the back half of this year. The loss was mostly due to an increase in costs, which are only expected to rise going forward as the rent-a-home company spends more on safety issues (such as theft and [prostitution](). This decrease [could affect the cash haul]( that Airbnb brings in on new issue day, since it's profitability was one of the main selling points against unprofitable private, gone public, companies, such as Uber and Lyft. The forecast isn’t looking much rosier in 2020 either, since its business in China is down 80% from the year prior. Thanks a lot, coronavirus. RagingBull, LLC 62 Calef Hwy. #233, Lee, NH 03861 Neither Raging Bull nor RagingBull.com, LLC (publisher of Raging Bull) is registered as an investment adviser nor a broker/dealer with either the U. S. Securities & Exchange Commission or any state securities regulatory authority. Users of this website are advised that all information presented on this website is solely for informational purposes, is not intended to be used as a personalized investment recommendation, and is not attuned to any specific portfolio or to any user's particular investment needs or objectives. Past performance is NOT indicative of future results. Furthermore, such information is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. 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