What Are LUPA Stocks?

LUPA Stocks

You may have heard stock traders discussing “LUPA” stocks. But what are they?

LUPA is a relatively new acronym that refers to four high-profile tech companies that have made their public debuts in recent years:

  • Lyft Inc
  • Uber Technologies Inc
  • Pinterest Inc
  • Airbnb Inc

Take the first letter of each stock and you get LUPA. These stocks are also referred to as “PAUL” stocks.

In this article, we will first look at LUPA stocks as a whole then drill down into each stock.

LUPA Stocks

LUPA stocks are often grouped together for a number of reasons. First, they are all tech companies, meaning that they all generally operate within the same market sector.

For example, Lyft and Uber both operate online ride-hailing services, Pinterest runs an image-based social media network, while Airbnb is an online home-sharing giant.

Second, before they went public, these companies were “unicorns,” which meant that private equity investors had valued each company at more than $1 billion. Lastly, they are all recent IPOs that hit public markets with a mix of copious red ink and heady growth.

Here is a deeper look at each of the LUPA stocks to help you understand their business model and growth potential.

Lyft (NASDAQ: LYFT)

Lyft began trading on the NASDAQ on March 29, 2019, and became the first ride-hailing company to become publicly traded in an eagerly-awaited market debut that netted it a valuation of about $18 billion.

Lyft and rival Uber have been challenging each other for dominance in the ride-hailing industry for years.

However, Lyft is only available in Canada and United States, unlike the world-spanning Uber. Lyft boasts a market share of about 35% in the United States.

But like Uber, Lyft is also deeply unprofitable. Both companies provide basically the same basic services so the competition boils down to market share, driver pay, and other factors that can help get them to positive cash flow.

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