What are LUPA stocks? Is this another acronym I need to remember to be a successful investor? Not really. LUPA, or PAUL, is the acronym for Lyft, Uber, Pinterest, and Airbnb stocks. Why did investors take an interest in these four stocks, and what do they have in common? LUPA stocks have similarities that we will explore in the next sections.
Chart by TradingView
Table of Contents
LUPA Stocks List
Why are LUPA stocks grouped? They are four tech companies that flourished in the mobile app generation.
Lyft, Uber, and Pinterest went public in 2019, while Airbnb did so at the end of 2020.
Before their IPOs, they were considered unicorns, meaning private equity investors gave each company a valuation superior to $1B. Their debuts on the stock market were a bit rocky for various reasons. Let’s take a deeper dive into each stock.
1. Lyft (NASDAQ: LYFT)
LUPA stocks number 1 is Lyft. Lyft was the first ride-hailing company to go public in March 2019. It is also the least valuable of the LUFA stocks, valued at just over $13B.
Lyft only operates in 644 US cities and 12 Canadian cities. It is trailing Uber in the US regarding market share, capturing a decent 35%.
Lyft began its business as a simple ride-hailing company. Since the company expanded in this field, they have offered rides for healthcare patients who have difficulty finding a method of transportation for their appointments.
Second, they invested in city bikes in major US cities. Next, they also acquired Halo Cars. Now, they can also advertise on people’s cars. Finally, Lyft partnered with Sixt to allow its users to rent a car. Their future investments seem to align with self-driving cars. They plan to have that set up in 2023.
The company hasn’t had a single profitable year to date. Revenues have increased since its creation, and net income has decreased. Many drivers have been furloughed to cut costs, and a focus on self-driving cars is in motion. Lyft’s business plan seems basic and lacks diversification to become a unique company.
Investors don’t seem too bullish at the moment. The stock is near its 52-week low and far from its IPO price. It’s cheap, but with the economy reopening after the pandemic, there is a light at the end of the tunnel. This investment can reward investors looking for rapid growth.
2. Uber (NYSE: UBER)
LUPA stocks number 2 is Uber. Uber went public two months after Lyft. Its market cap is far bigger, at over $70B. Uber is Lyft’s biggest competitor. Since its beginnings, the company faced many controversies among its executives. Be that as it may, I prefer Uber to Lyft regarding their business model.
Unlike Lyft, Uber is available in 80 countries. The business isn’t only about getting people from point A to point B. It also includes food delivery (Uber Eats), package delivery, couriers, freight transportation,eandnd scooter rentals. The latter is thanks to a partnership with Lime. Furthermore, Uber partnered up with local operators to offer ferry rides.
Uber has a few plans for the future. By 2040, they aim to have their entire fleet electric. They are also working on Uber Elevate to provide air services. Uber’s revenues have also been increasing but are still not profitable. However, they have much more potential than fellow rival Lyft. They are investing in the right direction and will be profitable soon.
The stock has taken a hit since its IPO, especially during COVID. Today, it is an attractive investment for those who believe anything can go from point A to point B, not only humans in a car.
3. Pinterest (NYSE: PINS)
I don’t want to put Pinterest down immediately, but I never understood why people are obsessed with this platform.
I’ve never used it and never will. I see it as Reddit for those who don’t know what Reddit is. A politically correct Reddit? Sorry for all Pinterest readers; this is just my 2 cents.
How about some positivity? Pinterest went public in April 2019, during the spring of LUPA IPOs. The company makes money via ads and through their ‘’pins”. Users can buy products directly on the app’s website.
Pinterest gets a commission. They mostly appeal to women with above-average incomes. It is an opportunity to discover new brands and items you didn’t know you needed—basically, it is an e-commerce platform.
For Pinterest to expand its brand, it must reach more than the US. However, monthly users have been increasing, perhaps due to the pandemic and more people staying at home.
I think that it will die down as the pandemic ends. Revenues increased far more than other LUPA stocks, and 2021 saw positive net income. The stock is far from its all-time high and barely above its IPO price.
Perhaps Pinterest will prove me wrong and expand its business. A post-pandemic economy will determine if its customers are loyal. If you believe in the business, do additional research and make an educated decision.
COURSE |  |  |  |
|---|---|---|---|
| DESCRIPTION | Learn how to read penny stock charts, premarket preparation, target buy and sell zones, scan for stocks to trade, and get ready for live day trading action | Learn how to buy and sell options, assignment options, implement vertical spreads, and the most popular strategies, and prepare for live options trading | How to read futures charts, margin requirements, learn the COT report, indicators, and the most popular trading strategies, and prepare for live futures trading |
| INCLUDED | Daily watch lists • Trade rooms • Trading scanners • Discord • Live streaming Day Trading > | Daily watch lists • Trade rooms • Options scanners • Discord • Live streaming Options > | Futures target levels • Trade rooms • Real time teaching • Discord • Live streaming Futures > |
4. Airbnb (NASDAQ: ABNB)
Last but not least is Airbnb. The company has been around since 2008 and finally went public in December 2020. It’s currently the most valuable of the LUPA stocks, coming in at almost $100B
The company operates in over 200 countries. Revenues are well spread out across North America, Europe, and the rest of the world. I think we all are aware of what the business is like. Is there anything more to tell?
The business is simple. To grow even bigger, they can acquire more companies. As soon as the pandemic is over, Airbnb will have even more success. They can appeal to backpackers, families, and billionaires. Their market is anyone with a smartphone.
More and more homes are built daily, and people won’t stop traveling anytime soon. Unusual destinations are also becoming more popular.
Airbnb took a big hit from the pandemic, but I am sure they will recover. What surprises me the most is that they haven’t posted a positive net income yet. However, it will come. The stock is only about 25% down from its all-time high and above its initial IPO valuation. I understand why it’s part of the LUPA group, but Airbnb is on a different level.
Final Thoughts: LUPA Stocks
LUPA stocks are unique. Hence their grouping. It’s like BANG stocks and FAANG stocks. Each stock is somewhat related to the other. As a result, you can look at specific groupings, like a basket trade.
LUPA stocks are grouped for many reasons. First, they are born thanks to smartphone use. Second, they are not yet profitable. I see Uber and Airbnb in a separate class.
Uber has the capacity and vision to expand their business on a much larger scale than Lyft; They can even buy them out eventually. When most people know what to order food or a driver, they think of Uber. They are essentially the Google of rideshare.
Airbnb also has a lot of growth capacity. Hotel chains, Booking.com, and Hostelworld are perhaps their biggest rivals, but they can acquire them down the line. Many users often seek the best price among various platforms, but Airbnb offers the best user experience.
When it comes to purchasing these stocks, it is very straightforward. They are available on your favorite US exchanges. If you want to learn more about profiting from the stock market, head over to our free library of educational courses. We have something for everyone, including trading options for those with small accounts.
