That means Lyft's first pass at impressing Wall Street may not go too well, despite the fact that most analysts have rated the stock positively, with 15 "buy," eight "hold" and only two "sell" ratings.
"This is a big opportunity for these companies, right out of the gate, soon after they just did their IPO roadshow, to tell investors how they're doing as publicly traded companies," Nathan said. "With 44% short interest, I suspect good news in this name could cause a little bit of a short squeeze. But [it's a] really tough name to play with options directionally, with implied volatility [and] the price of options as high as it is right now.
And, if you ask Seymour Asset Management founder and Chief Investment Officer Tim Seymour, an upside surprise isn't a long shot for Lyft. "This [stock] is down 20% into those numbers, so it's a case of where you actually think there may be even a chance for these guys to give you a little bit of an upside surprise," he said on "Options Action." "But the bottom line is: Expecting companies who are fresh out of the gates to be flawless on their earnings call is, I think, a tall order, even though I think there's a lot of bad news in this stock.
Private Advisor Group's Guy Adami also tentatively put himself in the "bull camp," noting that while Facebook's first earnings report hurt its stock, things "worked out pretty well" for the social media giant over the long term."I was wrong on this," he said. "I thought there'd be a window where you could buy Lyft before Uber['s] roadshow went, before the earnings. Now, I think you need to stay away.
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