Lyft shares got a lift from an earlier-than-expected profit forecast after startup co-founders Logan Green and John Zimmer said the ridesharing company could churn a profit by the year 2021. Shares of Lyft jumped as high as 8% in Tuesday’s trading session.
“The company has never been stronger and we’ve been performing incredibly well,” Green said at The Wall Street Journal’s WSJ Tech D.Live conference. “We’re going to be profitable on an adjusted EBITDA basis a year before analysts expect us to. We’re going to hit this target in Q4 2021.”
Lyft made its IPO debut back in March, but with no clear path to profit, shares of the company stumbled. Since then, however, more analysts have been optimistic that Lyft could show a profit, such as investment firm Guggenheim projecting that Lyft could become profitable in 2021 as opposed to 2023.
Getting Broad IPO Exposure
It’s been a dicey year for IPOs as debuts have been marked by lofty valuations that have yet to reflect themselves in their respective stock performances. However, investors don’t have to invest individually in IPO stocks.
Investors can get broad exposure to IPOs via the Renaissance IPO ETF (NYSEArca: IPO). IPO seeks to replicate the price and yield performance of the Renaissance IPO Index, which is a portfolio of companies that have recently completed an initial public offering (“IPO”) and are listed on a U.S. exchange.
For investors seeking IPO opportunities around the globe, the Renaissance International IPO ETF (NYSEArca: IPOS) adds an international spin to the IPO market. IPOS tracks the rules-based Renaissance International IPO Index, which adds sizeable new companies on a fast-entry basis with the rest upon scheduled quarterly reviews. Current IPOS holdings include SoftBank Corp, Xiaomi and China Tower Corp.
Broad Transportation Exposure
Investors who want broad transportation exposure can use the following:
- iShares Transportation Average ETF (NYSEArca: IYT): seeks to track the investment results of the Dow Jones Transportation Average Index composed of U.S. equities in the transportation sector. The underlying index measures the performance of large, well-known companies within the transportation sector of the U.S. equity market.
- SPDR S&P Transportation ETF (NYSEArca: XTN): seeks to provide investment results that correspond generally to the total return performance of an index derived from the transportation segment of a U.S. total market composite index. The index represents the transportation segment of the S&P Total Market Index (“S&P TMI”).
- Direxion Daily Transportation Bull 3X Shares (NYSEArca: TPOR): seeks daily investment results equal to 300 percent of the daily performance of the Dow Jones Transportation Average. The index measures the performance of large, well-known companies within the transportation industry.
For more market trends, visit ETF Trends.