A Bunch of Stocks Getting Blown Up
Here are a bunch of stocks getting absolutely blown up over the last couple of weeks/months:

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The Fed rate hike isn't a major factor for $LYFT
Looking at Lyft's 10-K, I found a section that describes that a 100 basis points change in interest rates wouldn't have a material impact on the company. Since the Fed only raised rates by 50 basis points, I don't see interest rate risk as a major factor in whether $LYFT survives or collapses.
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Do you prefer $LYFT over $UBER?

Although Uber has higher operating (EBIT) margins, Lyft has recently shown stronger gross margins which could point to higher future profitability.


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April 2022 Bloodbath - Names Down >30% Since April 1
April 2022 was one of the worst market months of all time. In fact, it was the worst since October 2008. Here are 100 stocks down >30% since April 1:


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$UBER and $LYFT price notes
2022YTD


Quarterly returns:

  • Negative for both companies for the past 4 quarters
  • Q2 2022 (in progress / incomplete) doesn't look like much will change


Quarterly returns (interactive)
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MT Capital's avatar
$11.5m follower assets
$LYFT's top-line relative to operating losses since 2018.
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A good edition from Chartr this AM. Will see if once Lyft rolls out its driver incentives plan if it can and quell its issue of attracting drivers. Uber tried to get ahead of Lyft’s ugly earnings by claiming it does have a path to black, but market not seemingly too optimistic on $UBER either..

My main interest in this space over the long run is how automated driving will end up effecting the ride share industry as a whole and how much of the “the physical drivers subsidize the company’s overhead costs by being contractors paying their own car maintenance costs” narrative will evolve.
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Car/Scooter rental companies are going to thrive this summer
As gas prices remain high, $UBER and $LYFT struggle to find drivers. Because of this, they're jacking up the price of rideshare rides.

Car rental companies like $HTZ and $CAR are going to see immense demand as tourists will have to rent a car to go from Point A to Point B. And for tourists who are in the city, while parking will be difficult to get, at least there are electric scooters that people can rent out. $BRDS is one company that's greatly positioned to capitalize on the growing demand for electric scooters.

If no one is willing to give people a ride, then people will have to drive themselves to their destinations. That's the theme for the upcoming summer travel season.
Carnage in Food Delivery
Just Eat Takeaway $JTKWY announced that its exploring options for its Grubhub business, merely one year after acquiring it for $7bn.

Any takers on what the new Grubhub valuation might be? (hint: less than $7bn)

The last two years were optimal conditions for delivery companies. But most are still massively unprofitable.

I expect further consolidation in the sector (FYI: there has been chatter of a $LYFT merger with $DASH)

"The Management Board confirms its alignment with shareholders in wanting to both create and realise value from the Company’s highly attractive portfolio of assets. As such, management is currently, together with its advisers, actively exploring the introduction of a strategic partner into and/or the partial or full sale of Grubhub. There can be no certainty that any such strategic actions will be agreed or what the timing of such agreements will be. Further announcements will be made as and when appropriate."
Food delivery is a wonderful business for me as a consumer, but I find it hard to reconcile as an investor. Feels like a huge scale game, but also a race to the bottom.
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Regulations on short-term rentals will hurt many parts of society
When government policymakers talk about regulating short-term rentals as a way to improve housing affordability, many think about $ABNB and $EXPE (owner or Vrbo) as being the most affected by these laws, along with their hosts and customers.

But according to the Cato Institute, there are more people that are negatively impacted by these regulations. Many hosts that live in areas that don't receive any benefits from their city's tourism industry are able to earn income from travelers looking for a cheap to stay. Seniors reap more income by renting out rooms to those same people. Small businesses see more business as travelers spend more at restaurants and shops.

From SF to Washington D.C., many rely on the income from Airbnb to pay their mortgages and other bills. It's a similar situation to the many workers that rely on ridesharing and food delivery gigs through $UBER $LYFT $GRUB and $DASH to pay their bills. Without these "share economy" and "gig economy" platforms, many Americans will have to eat through their assets before they go broke.

While there are research papers that have found short-term rentals to be a driving force for the price of rent, higher rents incentivize firms to build more housing supply. However, zoning laws have prevented firms from building more housing. In fact, there is research that points out that zoning laws have contributed immensely to the rising cost of housing in the SF Bay Area.

Thoughts?
Love your last paragraph. It is quite the catch-22. While short term rentals are a primary driver of high housing costs, they are a contributing factor. Eventually, demand will dry up and the increase in housing costs will start to slow or even reverse. We are starting to see that now as mortgage rates rise. Things will eventually normalize, but I am of the opinion that regulating short terms is not needed nor is it the correct approach.
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