Lyft Rides A Bullish Wave Ahead Of Q4 Earnings, But Will Robotaxis Be A Game-Changer? – Lyft (NASDAQ:LYFT)

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By Ronald Tech

Lyft Inc. LYFT is gearing up to report its fourth-quarter earnings after the market on Tuesday, with analysts expecting 22 cents per share in earnings and $1.56 billion in revenue.

Investors are watching closely—not just for the numbers, but for signs of what’s next as Lyft looks to challenge Uber and Tesla in the autonomous ride-hailing race.

Read Also: Lyft Q4 Earnings Preview: Streak Of Revenue, EPS Beats On The Line After Rival Uber’s Strong Fourth Quarter

Lyft Bulls Are In The Driver’s Seat

Lyft stock is on a strong bullish run, trading above its five-day, 20-day, and 50-day exponential moving averages (EMA)—a clear sign of continued buying pressure.

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Lyft stock at $15.12, is comfortably above its eight-day simple moving average (SMA) of $13.97, its 20-day SMA of $13.69, and even its 50-day SMA of $14.37, reinforcing its upward momentum.

The 200-day SMA at $13.94 also sits below the current price, flashing another bullish signal. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator at 0.06 further supports the stock’s bullish stance.

However, with a Relative Strength Index (RSI) of 63.12, Lyft is nearing overbought territory—suggesting a potential cooldown or consolidation phase could be on the horizon.

The Robotaxi Race Heats Up

While earnings will dictate the stock’s short-term moves, Lyft’s long-term trajectory could be shaped by its self-driving ambitions. In a bold move against Uber Technologies Inc‘s UBER Waymo-powered robotaxis and Tesla Inc‘s TSLA full self-driving (FSD) ambitions, Lyft has finalized plans to deploy robotaxis powered by Mobileye Global Inc MBLY across Dallas by 2026—with further expansion into other markets.

See also  Unearthing AI Fortune: A Dive into Top Stocks Decoding AI Potential

"Over time, it takes just a few winners to work wonders." -- Warren Buffett, from the 2022 Berkshire Hathaway letter to shareholders

One big winner can make a fortune. No one knows this better than the Oracle of Omaha.

Take Apple, one of Buffett's most famous investments. A $50,000 investment, made in 2007 -- the same year the iPhone debuted -- would have grown to a cool $3.5 million today, a mere 17 years later.

Are there any stocks out there today with that type of potential? Of course. Here are three that might have what it takes.

Image source: Getty Images.

Microsoft: The Giant's Stride in AI

Topping the list is Microsoft (NASDAQ: MSFT). The company that made former CEOs Bill Gates and Steve Ballmer some of the richest men in the world is once again the largest company on the face of the Earth with a market cap topping $3 trillion. And thanks to its many artificial intelligence (AI)-related ventures...

Let's start with the company's cloud services business. It's already a massive moneymaker for Microsoft, generating $25.9 billion in its most recent quarter (the three months ended Dec. 31, 2023). That makes it the second-largest cloud services vendor globally, trailing only Amazon Web Services.

As AI usage ramps up, Microsoft stands to benefit from increased cloud services. Indeed, after decelerating some in 2022, cloud spending appears to be reaccelerating as organizations explore how AI can improve their processes and generate efficiencies.

In addition, Microsoft's longstanding partnership with OpenAI, the company behind ChatGPT, makes Microsoft a major player in the race to develop the next AI breakthrough.

Microsoft has multiple pathways to riches on the AI front. Given its outstanding track record and excellent management, Microsoft could be one AI stock that makes many fortunes going forward.

CrowdStrike: Safeguarding Fortunes with AI

Next is CrowdStrike (NASDAQ: CRWD). While nowhere near the size of Microsoft, CrowdStrike is still likely to make a number of fortunes in the coming years, thanks to its cutting-edge AI-powered cybersecurity offerings.

The company runs perhaps the premier cybersecurity platform available today, which protects networks, endpoints, and data through add-on modules that are tailored to its customers' needs...

Financially, CrowdStrike is rocking and rolling. In its most recent quarter (the three months ended Oct. 31, 2023), the company reported $786 million in revenue, up 35% from a year earlier. Moreover, annual recurring revenue (ARR)...

In short, this means CrowdStrike is growing its subscription base, through bringing in new customers and by upselling additional security modules to existing customers.

At any rate, the company's solid growth points to big things ahead, as the number of cyber threats continues to grow -- meaning CrowdStrike's growth curve could extend for many years to come.

Nvidia: Riding the AI Wave to Great Heights

Last, but by no means least, is Nvidia (NASDAQ: NVDA). Let's face it: No company or stock has ridden the AI wave better or to greater heights than Nvidia. The company is now America's third-largest public company...

Exploring the Meteoric Rise of Nvidia in the Tech MarketThe Unstoppable Ascendancy of Nvidia in the Tech Market

JPMorgan analyst Samik Chatterjee sees the latest announcement as a meaningful competitive step, providing more clarity on timelines, geography, and its fleet operator partner, Marubeni.

However, one key piece is still missing—an original equipment manufacturer (OEM) partner to supply the vehicles.

Investor Takeaway

With Lyft stock riding a technical uptrend and investors awaiting earnings, the bigger question is whether the company’s robotaxi push can drive long-term value.

While the stock’s bullish momentum suggests confidence, Wall Street will be watching whether Lyft can deliver the numbers—and a clear roadmap for its autonomous ambitions.

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