5 Biggest Tech Stock Drops in 2022

4. Lyft, Inc. (NASDAQ:LYFT)

Number of Hedge Fund Holders: 35

Year to  Date Share Price Drop: 70%

Lyft, Inc. (NASDAQ:LYFT) is a ridesharing platform provider that allows drivers to find rides and put their cars out for rent. It also offers transportation solutions for organizations.

With the regulatory backdrop getting tougher for the gig economy, it’s no surprise that Lyft, Inc. (NASDAQ:LYFT)’s shares have lost 70% of their value this year, as the company’s problems become compounded with weak purchasing power reducing demand, high gas prices, and weak earnings guidance. As part of their second quarter of 2022 holdings, 35 out of the 895 hedge funds polled by Insider Monkey had invested in the company.

Gordon Haskett however believes that the negative sentiment around Lyft, Inc. (NASDAQ:LYFT)’s shares is a bit excessive, as the firm upgraded the shares to Buy from Hold and kept a $24 share price target in October 2022.

Lyft, Inc. (NASDAQ:LYFT)’s largest investor is Panayotis Takis Sparaggis’ Alkeon Capital Management which owns 5.5 million shares that are worth $74 million.

Artisan Partners mentioned the company in its Q2 2022 investor letter. Here is what the fund said:

Lyft, Inc. (NASDAQ:LYFT), the second-largest ride-hailing company in the US, connects riders and drivers over a mobile app. When we began our GardenSM campaign, our thesis was based on a likely strong ridership recovery post-pandemic, as well as management’s growing focus on increasing profitability after years of heavy investment. While the company has made some progress on margins as the economy has re-opened, driver shortages and fuel inflation have disrupted that progress. Given uncertainty around when these cost pressures could abate, we exited our position.