The Smartest Growth Stock to Buy With $20 Right Now

Core Viewpoint - Lyft is experiencing a significant turnaround and presents a compelling investment opportunity under $20 per share, despite the competitive landscape with Uber [1][2]. Financial Performance - Lyft reported a 15$4.3 billion and a 27% year-over-year revenue increase to $1.55 billion, slightly surpassing consensus estimates [3]. - The company achieved profitability with a net income of$22.8 million for the full year and $61.7 million in Q4, alongside a free cash flow of$766.3 million [4]. Competitive Position - Lyft holds approximately 24% market share in the U.S. ride-sharing market, competing directly with Uber [6]. - Lyft outperforms Uber in key metrics, including the fastest average arrival time and a 16 percentage point driver preference advantage [7]. - The company continues to innovate, introducing features like price lock, which Uber plans to replicate [8]. Growth Opportunities - Lyft anticipates mid-teens growth in rides and 10% to 14% growth in bookings, indicating a positive outlook despite a challenging pricing environment [9]. - The company is diversifying its revenue streams through media partnerships and plans for autonomous vehicle ride-sharing with Mobileye in 2026 [10]. Valuation - With a market cap of less than $6 billion and a free cash flow of$766.3 million, Lyft's stock trades for less than 8 times trailing free cash flow, presenting a potentially undervalued investment opportunity [11]. - The valuation appears attractive given the company's recent revenue growth of 27% and its position in a rapidly growing industry [12].