Shares of Lyft (LYFT) and DoorDash (DASH) are trading higher Monday afternoon after both companies received upgrades from sector perform to outperform from RBC Capital Markets. The company also investigated what a potential partnership between the two companies could be.
RBC Capital Markets equity analyst Brad Erickson joins Yahoo Finance to discuss the decisions behind the conference call and explain the strength of cross-platform loyalty.
Erickson elaborates on what's good about both companies: “For Lyft, we've done our own analysis of what was fundamentally a lot better for Lyft as of August last year and continues to get better. Right now. , we believe both companies operate on a relatively equal footing. They compete with Uber (UBER)… The stock is not priced to compete with Uber. In terms of DoorDash, the numbers are too low. An even simpler call that seems to be: I like the fact that someone starts out by ordering DoorDash once a month or twice a year, and the frequency continues to grow predictably. It shows capability. Betting on DoorDash here is the same as betting on macro in terms of a consumer slowdown, and again you think the numbers are going to go up. And that's not valued.”
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Editor's note: This article was written by Nicholas Jacobino
