In this article, we will discuss 5 best TaaS stocks to buy now. If you want to read our detailed analysis of the TaaS industry which highlights key trends and major players, you can go to 10 Best TaaS Stocks to Buy Now.
5. Lyft, Inc. (NASDAQ:LYFT)
Number of Hedge funds: 43
Lyft, Inc. (NASDAQ:LYFT) is a California-based ride-hailing service. The company is United States’ second largest ride-sharing service, with a 29% market share. The company fell hard during the COVID-19 pandemic. However, it made a swift return with a 36% revenue growth YoY in 2021. According to Fortune Business Insights, Lyft, Inc. (NASDAQ:LYFT) could achieve a CAGR of more than 30% from 2021 to 2028, given its pivoting business model towards autonomous vehicles.
Lyft, Inc. (NASDAQ:LYFT) performed well in the first quarter of 2022, reporting an EPS of $0.07, compared to -$0.07 estimates. The revenue generated was $875.58 million, outperforming the estimates by 3.47%. Analyst forecasts show that Lyft, Inc. (NASDAQ:LYFT) is expected to grow its revenue by 33% for the fiscal year 2022 and 24.2% for 2023. Furthermore, the company is expected to expand its EBITDA by 154.5% for the financial year 2022 and a further 150.1% by the next year.
The hedge fund sentiment was positive for Lyft, Inc. (NASDAQ:LYFT) in the fourth quarter of 2021, with 43 hedge funds having a stake in the company compared to 33 in the third quarter. Alkeon Capital Management was the most prominent shareholder of the company, with 4.9 million shares worth $211 million. The fund increased its activity by 5% in the fourth quarter as compared to the third.
Here is what ClearBridge Investments had to say about Lyft, Inc. (NASDAQ:LYFT) in their second-quarter 2021 investor letter:
“We also added to our disruptors exposure in the second quarter with the purchase of Lyft, a leading, U.S. focused ride-hailing business. Lyft operates in a rational duopoly with Uber and has been able to maintain consistent 30%–35% market share for the past several years. The company should be a key beneficiary of the U.S. reopening, with a post-COVID-19 recovery in rideshare demand driving an acceleration in volumes and revenue. We also see considerable runway for growth beyond this rebound, as rideshare remains underpenetrated. Lyft’s ability to weather a period of significant demand destruction in 2020 is encouraging and we see opportunity for margin expansion ahead. Despite volatility created by ongoing labor negotiations, we see the potential for new, state-level legislation creating collective bargaining rights for gig economy workers to provide greater certainty around industry labor costs, with increases that should be manageable.”