Lyft Stock vs. Uber Stock || How to Invest in Ridesharing

 

At the time of recording this podcast, Lyft's stock is priced around $45, while Uber's is priced around $30. 

I'm sure a lot of you will go ahead and assume that Lyft's stock is, therefore, more valuable. 

You might think that the stock price determines the value of the company, and in a fashion, you'd be right.

It is true that if you multiply the price of the stock by the number of shares outstanding, you get the total market capitalization. 

However, that number of shares outstanding is just an arbitrary number.

• The companies can make it whatever they want. 
• They can add shares or restrict shares just by holding a simple board meeting. 

What I like to do is to go into the charts and see what's happened.

Looking at Lyft, on March 29, 2019, their shares were selling at almost $80. 
Today, they are selling for $45. 

That's already looking kind of weak if you're planning to go long term with your stocks. 

If you're interested in day trading, the analysis you need to do is quite different from the fundamental analysis done when holding stocks long-term. 


It's vital that you know in advance:

• How you're planning to hold these stocks
• How news and media coverage affect stock prices
• How to do the proper analysis before making any investment