Let’s first start by saying this is not a trade. The principal of Citron has been an investor in Lyft for the past 2 years and we have increased our position in the open market.
Over the last 25 years, we have shorted more stocks than anyone reading this article. From Wayfair to HubSpot to our initial Tesla short, most all bad recommendations had one common theme:
Money losing companies with high growth and large TAM.
Goldman Sachs expects the ride hailing industry to grow to $285 billion by 2030.
This is the exact same short thesis that is being passed around on Lyft by the “amateur shorts”. Under this method, you would have been short AMZN, NFLX, SQ, and the list goes on.
The entire ride share market in the US only accounts for 1% of miles traveled today…. we have only just begun. Below are 5 reasons not to be short Lyft.
READ THE FULL REPORT HERE