Removing Neumann is a difficult decision for Son, who has long believed in WeWork and Neumann's vision to quickly expand the company.Technologyread more
The Kingdom and oil and gas industry have been slow to shore up defenses, raising red flags about the possibility of longer term fall-out in the region.Technologyread more
Datadog went public on Thursday and instantly hit a $10 billion valuation, becoming the fourth cloud software debut to reach that level this year.Technologyread more
There are challenges with Iran, North Korea, the Afghan Taliban, Israel and the Palestinians — not to mention a number of trade pacts.Politicsread more
Blackstone Executive Vice Chairman Tony James says he's less optimistic now than before that the U.S.-China trade war could be resolved, but even a smaller deal could help...World Economyread more
In his new memoir, "The Ride of a Lifetime," Iger explains why he decided against the deal to buy Twitter.Technologyread more
In perhaps Buffett's first televised profile, he explained a method of investing that prioritizes bargains and makes use of an occasional baseball analogy.Marketsread more
Gluskin Sheff's David Rosenberg reinforces his recession forecast following the Federal Reserve's September meeting.Futures Nowread more
"This would be the most profound violation of the presidential oath of office certainly during this presidency," House Intelligence Chair Adam Schiff said.Politicsread more
A 58% majority of registered voters express unease about voting for Trump, but slightly more say the same about Joe Biden and Bernie Sanders, while Elizabeth Warren fares only...Politicsread more
The massive market transformation this month that some on Wall Street called a "once in a decade opportunity" might have just been a one-off technical move because of taxes.Marketsread more
Lyft's recent troubles are priced into the company's stock and now is a good entry point, according to Deutsche Bank.
The firm initiated coverage of the ride-hailing company on Thursday with a buy rating and a $70 price target, implying about 50% upside for the stock.
"We initiate coverage of Lyft with a Buy rating and think the stock may be bottoming. The company reported robust 2Q results, and yet the stock has been weak," Deutsche Bank's research analyst Lloyd Walmsley said in a note to clients.
Shares of Lyft have cratered more than 35% since its initial public offering in March on fears about profitability, regulatory scrutiny, an early release from the IPO lockup and whether ride-sharing is a good business. Lyft, and its biggest competitor Uber, closed at all-time lows on Tuesday, weighed down on these fears, but Walmsley says the concerns are overblown.
"We think the recent sell-off in Lyft's shares presents an attractive entry point, particularly for longer-term investors who can stomach a period of volatility given the uncertainty around when the market will start to give the company credit for an improving ramp towards profitability," said Walmsley.
Last month, Lyft said it lost $644.2 million in the second quarter, representing a significant jump from the $178.9 million it lost a year earlier. A decreased appetite for unprofitable companies is hurting the companies shares.
Walmsley isn't worried about Lyft's losses and said "a rational duopoly in the US makes Lyft a good business today, and improving efficiency should drive healthy long-term margins."
A proposed California law could also represent a major threat to Lyft's business model should it pass through the state Senate, as it would force the companies to reclassify their drivers as employees. But again, Walmsley is not worried.
"In a worst-case scenario, we see Lyft raising prices and passing along the cost to riders and creating a slight drag on growth in CA (probably ~20% of Lyft bookings)," said Walmsey.
Lyft's lockup on nearly 90% of its shares expired last month, but Walmsley said "the bulk of the lockup pain is in the shares at this point and should not be an incremental drag on the shares."
Walmsey said he liked Lyft as a "pure play" on ride sharing in the U.S., where the overall market is becoming more "rational."
The note did not mention a lawsuit filed Wednesday in San Francisco accusing Lyft of failing to conduct adequate background checks for its drivers. The suit alleges that as early as 2015, Lyft became aware that some drivers were sexually assaulting women riders. The company has said it continually conducts criminal record checks of its drivers, offers optional anti-harassment training and is planning more safety improvements.
— With reporting from CNBC's Michael Bloom