Lyft Stock and Uber Stock - How To Invest In Ridesharing In 2020
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Now if you like the show I love of it if you can click subscribe so that way who get my new episodes automatically downloaded and sent to you as soon as they cut out so you can stay fresh on the hottest investment opportunities and education and now finally before we start. Today's show If you're interested in learning more please feel free to text the Word Stocks S. T. Elsie chaos to the number. Four two. Two two from your phone wherever you are and you'll automatically be subscribed to email list. Will you'll get our our free masterclass on how you can get started learning the market and taking control of your finances all right. Let's get to the show. Hey guys Mubarak Kevin within pennies hope. You're doing well in this episode. I WanNa talk about lift stopped versus Oberstar. All right. I'm GonNa talk about how you guys should view them whether they're interesting investment and kind of my general analysis on them or because they're the two big ridesharing apps too big in the industry and in the space space so I wanna kind of use this as a teaching lesson for you guys to be able to absorb how you should look at competing companies What people do right and what some people do wrong? So let's get right into it. The major thing people do wrong right away with actually all stocks and I want to talk about is they. They think that the stock price itself determines the value of the company. And you might be thinking well Mubarak what what are you talking about right. That's obviously what it means. Because when I multiplied the stock price by the amount of shares I get the total market capitalization right and so yeah in that fashion fashioning correct but just because lists stock price right now is higher than Uber Stock Price. That has nothing to do with whether or not the actual value is his higher. Because again about the equation I just said its stock price multiplied by the number of shares outstanding right. So I don't WanNa get to matthew here too nerdy here. I tried to make stocks as easy as possible so people don't get intimidated because you know Wall Wall Street already spends enough billions of dollars trying to make it more complicated than it needs to be but that number of shares outstanding unfortunately fortunately that's just a super arbitrary number companies. Make it whatever they want and they're able to change it whenever they won't as well so when a company buys is back their stock or really. That's not exactly because it's still afloat. But they have the ability to create more shares. Just having a board meeting and they also have the ability to restrict shares. So you have to really be careful when you're thinking about that right so just right off. The Bat you know at the time of this recording lift stock is around forty five dollars. We'll boost prices around thirty dollars and so that doesn't mean that lift is better than Uber. You were vice versa. So I like to do is I'd like to go into the charts and see what happened right so looking at lift seeing and you know Friday march twenty nine th of Twenty nineteen. It started almost eighty dollars. Aren't keep to market at about seventy eight dollars. And today it's shaping about half awesome data forty five so already. That's kind of weak from you know talking about going long. That's not sock that I would be interested in going along with that even when I look at the one month. You know the one what I like to do is when you're doing stock analysis especially when you're looking at day trading you WanNa just look at the the stock price chart all right so again even though we're talking about lifting Uber when you're looking at day trading meaning you WanNa traded within a week within a maximum among leading a few weeks then you're not really caring about the fundamental. I don't really care about the financials of lifted mujber if I want to be in and out within a week or two right all I'm trying to do is just take advantage of market timing in or take advantage of like a quote unquote sale in the stock price and by some flip it at a profit. That's what you do when your day trading and so you have to make sure that you know listening to this episode. I'm going to be talking in the sense of of a day trading and flipping Stocks rather than doing a long-term. Hope that this isn't the Warren Buffett advice where you just buy something and then just just wait fifty years you can still do that with these companies But if you WANNA do that you WanNa do the fundamental analysis okay. The fundamental analysis part. Art is where you're going to go in and you're going to look at the annual report of the company. You'RE GONNA analyze the financials you're going to look at the management team team. You're going to look at the industry and that's what Wall Street spends all day doing for day trading. You have to look at just the price variations on day-today and where you can really profit okay. So for example looking at this in a five day it was a large drop on December. Twenty third where I went from forty dollars to forty five dollars now usually that has to do with some sort of news and so what I like to do is. There's this really cool. ooh Free website resource called invis- dot COM Also intending stock dot com slash stocks. We also have a free stocks. Screening software allows you to really do some great research on socks US either one you can use a eventually. We're Gong to make the antennae. Any stock stock screener much more intricate. For Right. Now Finn visits pretty good because what they have is really cool feature where you can type in any stock look at their chart but you can also see all the news related to it and sometimes you can also see what news impacted the stock price in. When I look at you know the thing is these stocks They have news coming on every day as hanging the issue with some of the blue-chip doc. You can't you don't necessarily know what's going to impact it because so many people are covering it right when you look at penny stocks or you look at the stocks that the multi odd billion dollar hedge funds of Wall Street aren't trading. You get the advantage of having. I wouldn't say liquidity but you don't have to compete with those types of people right. They have billion dollar software and algorithms trading and high frequency trading that they use. But that's why I like doing penny stocks because I'm trading stocks that they don't care about. I saw these those penny stocks traded on the OTC market pink sheets. And because because of the fact that their value is so low. The hedge funds aren't even able to participate in those stocks Because their investors in the people who put the money gave the money to them in the first place don't want them trading those quote unquote cheap stocks But that's good because that allows us to profit so well you know what you have to do with these. Bigger stocks is really look at the short term technical analysis and then finally I would recommend taking a look at you know what analysts are giving to it right because it's all hype. Unfortunately the the stock price of company is changing on a day to day basis drastically graphically and unfortunately you know in reality. The same things going on in the company writes the smart. CEOS of these companies aren't changing their decisions at all and honestly probably decides looking at their own financial wealth. They're not even caring about the stock price. Because that doesn't have that has nothing to do with what's going on on a day to day. All it has to do is the buy and sell in the market demand of the stock market. Some you know there was actually a price target cut cut of list anytime you see a price target cut. That's usually bad news because what that means is that the analysts that are reviewing and analyzing the companies have lost faith in the long term viability of the stock so Piper Jaffray which is actually a major head. Sean recently reduced the price price target from seventy nine dollars to sixty dollars and this was just yesterday on December twenty nine seven so in that case you I would say that. It's actually a reduction in the really possibility where lifting go so. Those are the two major keys I would look at when comparing hang stocks. Like lifting Uber. If you do have any other questions I always recommend you reach out to us at Adleman. That's a D. M. I n.. At in Penny Stock DOC DOT com. And if you have any other recommendations as well for podcasts episodes content videos just always feel free to reach out to me and we'll get that done Asia so hope you guys enjoyed this and I'll see you guys next time take care.