It appears that it is not a good idea to buy Lyft stock. Not yet, anyway. Lyft (NASDAQ:LYFT) stock continues to plateau. Investors are trying to think how they are going to profit from this stock. The stock price has remained in the low $40s for the last two months. The stock price has not changed much even after the company’s 3rd quarter results beat expectations.
A strong stock would look different. It could have a flying plateau. That is a pattern that forms after a stock has made a strong move up. Strong stocks will consolidate gains sometimes in a flat, sideways pattern in a tight range instead of selling back. Picture a 45 degree rise and then a move sideways for several sessions. Strong stocks tend to rest in these patterns, and then start another leg up.
Many people expect Lyft stock to post losses in the near future. It is possible that advances in technology could change the stock’s performance. The invention of self-driving cars could lead this company to greater success. Lyft continues to test self-driving cars. Lyft runs the largest public self-driving commercial program in the USA. It employs 400 engineers who are testing these cars. They have completed over 75,000 rides in them.
Both Lyft stock and Uber stock trade below their IPO prices. These big ridesharing companies are putting in an effort to improve their situations.