Latest news with #LYFTInc
Yahoo
23-04-2025
- Business
- Yahoo
LYFT Inc. (LYFT): Among Recent Activist Investor Campaigns
We recently published a list of . In this article, we are going to take a look at where LYFT Inc. (NASDAQ:LYFT) stands against other recent activist investor campaigns. Economic uncertainty and market volatility are some of the factors fueling activist investor campaigns in 2025. In the first quarter alone, there was a 17% jump in activist campaigns, affirming how high-profile activist investors are becoming agitated and increasingly pushing for strategic changes aimed at unlocking shareholder value. 'We are in a phase where activists continue to take advantage of all the uncertainties,' said Jim Rossman, global head of shareholder advisory at Barclays. 'In early 2025 we have seen more fights, more settlements and more board seats won by the activists than we did this time a year ago.' The US remains the epicenter of shareholder activism, accounting for over half of the first quarter's campaigns. Japan comes second with 16 campaigns, accounting for a 45% increase compared to the same period last year. The fresh efforts this year follow a record number of activist shareholders targeting businesses around the world in 2024. Additionally, the campaigns are on the rise owing to the market instability caused by President Donald Trump's tariffs, widespread layoffs at U.S. government agencies, and recessionary fears. READ ALSO: Billionaire Rob Citrone's Top 10 Stock Picks and Jeff Smith's Top 10 Activist Targets and Their Returns Compared to the S&P 500. According to a Barclays report, many activist investors remain focused on pushing for board changes. It also emerged that activists increasingly have their way as part of the campaigns, having won 51 board seats, up 34% from the same quarter a year ago. Secondly, activist investors are also agitating for strategic and operational changes, believing they could help unlock hidden value. Finally, 26% of the campaigns pushed for merger and acquisition activity, a significant drop from the historical average of 45%. Demands for merger & acquisition actions, such as selling a firm or selling business units, are still largely ignored, appearing in only around 25% of campaigns. Since the worldwide deal volume reached a record high in 2021, M&A requests have decreased by around half. Although fewer activist campaigns were submitted by sustainability-minded shareholder activists to business annual meetings this year, conflicts on issues like corporate diversity initiatives still exist. As of February 21, investors pressuring corporations on environmental, social, and governance (ESG) issues submitted 355 shareholder proposals, compared to 536 at the same time in 2024 and 542 at the same time in 2023. The decline came amid growing concerns that big investors will not support the measures. Additionally, ESG-focused activist investors also remained wary that Republican regulators would not approve their resolutions to go to a vote. Additionally, the decline came as companies became wary of unnecessary public battles, opting to make changes to avoid unwanted proxy fights. Activism is also becoming a popular strategy for newcomers, including freshly founded hedge funds that have never launched a campaign before. These funds are anxious to make a return in difficult times and are emboldened by the success of others. According to the data, eleven so-called first-timers ran campaigns during the quarter. Looking ahead to the remainder of 2025, Barclays bankers anticipate that the majority of activity will continue to be concentrated on U.S. corporations and that more companies will have to respond to shareholder demands. We sifted through financial media reports and news articles to identify 15 recent activist investor campaigns. We then examined some of the strategic changes that the activist investors are agitating and the impact they are likely to have in the long run. Finally, we ranked the activist campaigns in ascending order based on when they occurred. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A ridesharing passenger and driver in a car, looking out the window in anticipation of their Inc. (NASDAQ:LYFT) is a technology company that offers a ridesharing platform that connects riders with drivers, offering various transportation options like ridesharing, bikes, scooters, rentals, and transit information. After losing nearly 50% in market value, activist hedge fund Engine Capital is ramping up pressure, pushing for strategic changes to revitalize the company's growth prospects. Engine Capital has proposed changes to the ridesharing company board, urging the company to consider a capital allocation strategy to return value to shareholders. The hedge fund also wants LYFT Inc. (NASDAQ:LYFT) to do away with its dual-class share structure. The activist investor is already gearing up for a boardroom fight, having already nominated candidates for consideration. Engine Capital insists strategic changes are necessary to address the sagging stock price that has shed more than 60% in market value over the past year. In addition, the hedge fund insists that strategic changes could strengthen LYFT Inc.'s (NASDAQ:LYFT) competitive edge, which has lagged Uber for years. Overall, LYFT ranks 4th on our list of recent activist investor campaigns. While we acknowledge the potential of LYFT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LYFT but that trades at less than 5 times its earnings check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at .
Yahoo
19-04-2025
- Business
- Yahoo
Is LYFT Inc. (NASDAQ:LYFT) the Best High Short Interest Stock to Buy Now?
We recently published a list of the 10 Best High Short Interest Stocks to Buy Now. In this article, we are going to take a look at where LYFT Inc. (NASDAQ:LYFT) stands against other high short interest stocks to buy now. Aditya Bhave, BofA Securities head of US Economics, joined 'Power Lunch' on CNBC on April 17 to talk about whether tariffs are ultimately inflationary, disinflationary, or deflationary. Aditya Bhave responded that the impact depends on the magnitude of the uncertainty shock. He explained that tariffs are generally stagflationary, which means that they contribute to both inflation and economic stagnation. However, he also emphasized that it's not just the content of the trade policy announcements that matters, but also the disruptive way in which these policies have been communicated, which has increased uncertainty for businesses. He noted that there is a scenario where the uncertainty caused by these policies could outweigh their stagflationary effects, making tariffs disinflationary instead. Bhave also referenced Fed Chair Jerome Powell's recent hawkish remarks and drew a parallel to Powell's stance during the 2021–2022 rate hiking cycle. He highlighted Powell's assertion that sustained full employment is not possible without price stability, which is a justification that Powell previously used for aggressive rate hikes even during a technical recession. Bhave believes the Fed is likely to maintain its focus on price stability and continue its current policy approach in the near term. Earlier during the COVID-19 pandemic, the Fed and Powell in particular, notably responded to tariff-induced supply chain disruptions by aggressively stimulating the economy. Bhave argued that this aggressive response came after and not during the initial supply chain disruptions, and that while the Fed may have acted a bit late, it ultimately raised rates sharply by 425 basis points in a single year. He does not expect the Fed to repeat such aggression, but believes that the case for holding rates steady is strong right now. We first sifted through stock screeners to find companies with a short interest between 10% and 25%. We then selected the 10 stocks that were the most shorted as of April 16, but at the same time were popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database, which tracks the moves of over 1000 elite money managers. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A ridesharing passenger and driver in a car, looking out the window in anticipation of their destination. Short % of Float As of April 16: 11.91% Number of Hedge Fund Holders: 55 LYFT Inc. (NASDAQ:LYFT) operates a peer-to-peer marketplace for on-demand ridesharing in the US and Canada. It operates multimodal transportation networks that offer access to various transportation options through the Lyft platform and mobile-based applications. It provides a ridesharing marketplace, a car rental program for drivers, and a network of shared bikes & scooters. In 2024, the company's Ridesharing segment achieved all-time highs in rides, riders, and driver hours. This success propelled Lyft to its highest market share since 2022 by the end of January of the following year. In Q4, Lyft recorded its highest number of driver hours in company history, which was driven by improved driver retention and earnings. In total, drivers earned ~$9 billion on the platform in 2024. The company's commitment to improving the ridesharing experience is evident in features like the on-time pickup promise and the expansion of Women+ Connect, which has facilitated more than 50 million rides. A Q4 survey indicated that driver preference for LYFT Inc. (NASDAQ:LYFT) was 16% higher than its largest competitor. Lyft is also forming partnerships to further grow its ridesharing segment. For instance, the DoorDash partnership supported ~8 million rides in Q4 2024. Overall, LYFT ranks 7th on our list of the best high short interest stocks to buy now. While we acknowledge the growth potential of LYFT, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LYFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
