How to Invest in Ride Hailing Stocks

by Fred Fuld III

Did you notice what happened with the IPO of Lyft (LYFT)? The stock came out at $72 per share and immediately jumped to 88.60 per share. Since that time, it has drifted downwards, and closed at exactly 70.00 today, two bucks a share below its original offering price.

The stock has a market cap of almost $20 million but no earnings. The price to sales ratio is 7.61.

Lyft’s biggest competitor is Uber, which hasn’t gone public yet. Unless you are an accredited investor who may have gotten pre-IPO shares, the chances of you getting some IPO shares from your broker are slim.

Currently, the largest shareholder of Uber is Softbank (SFBTY), the telecommunications and e-commerce company based in Japan. The company currently owns about 15% of Uber. Softbank trades at 9.42 times trailing earnings and even pays a small dividend of 0.40%.

There is a small publicly traded company called HereCar (HYRE) which has a business that allows car owners to rent their idle cars to ride-sharing service drivers. The company has a market cap of $63 million and a price sales ratio of 4.55.

Hopefully one of the ride sharing stocks can your portfolio for a ride to higher profits.

Disclosure: Author didn’t own any of the above at the time the article was written.