Why Lyft Stock Was Sliding Today

Shares of Lyft (NASDAQ: LYFT) were falling Tuesday after one analyst called the ridesharing stock a sell, saying it was poorly positioned compared to rival Uber Technologies (NYSE: UBER).

As of 12:44 p.m. ET, the stock was down 2.9%.

Bank of America (NYSE: BAC) analyst Michael McGovern initiated coverage on Lyft with an underperform rating, and said that the company appears to have lost market share to its chief rival in recent years. Uber, the leading ride-hailing company, said its U.S. mobility share was at or near a multiyear high in the second quarter. The analyst also sees Lyft as being at a disadvantage against Uber due to its smaller scale, and expected it to continue losing market share. McGovern gave it a 12-month price target of $14, in the neighborhood of where it traded after Tuesday morning's pullback.

Source Fool.com