LYFT - Lyft, Inc.

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
46.75
+0.15 (+0.32%)
At close: 4:00PM EST
Stock chart is not supported by your current browser
Previous Close46.60
Open46.74
Bid46.72 x 1000
Ask46.85 x 1100
Day's Range46.60 - 47.67
52 Week Range37.07 - 88.60
Volume3012690
Avg. Volume6,385,446
Market Cap14B
Beta (5Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)-6.66
Earnings DateOct 30, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est67.70
  • Barrons.com

    The First Real Effort To Regulate Tech Is About to Begin. It Could Get Messy.

    To get a taste of what’s coming, head to California. On Jan. 1, two new California laws will try to address some of the thorniest issues created by tech companies’ mounting power. Let’s start with AB (Assembly Bill) 5, which focuses on improving working conditions for “gig” economy workers at places like (UBER)(ticker: UBER), (LYFT) (LYFT), DoorDash, Postmates, and Instacart.

  • New laws and regulations that could impact your finances in 2020
    Yahoo Finance

    New laws and regulations that could impact your finances in 2020

    From adjusted IRS withholding tables that could change take-home pay and help taxpayers avoid costly penalties, to minimum wage increases in 20 states, to amended overtime pay requirements, this year will see new laws that could affect your finances.

  • Higher Prices Very Well May Be the Savior of Lyft Stock
    InvestorPlace

    Higher Prices Very Well May Be the Savior of Lyft Stock

    InvestorPlace contributor Vince Martin recently wondered what it would take for Lyft (NASDAQ:LYFT) to break out of its slump. Despite a flawless performance over the last three quarters, Lyft stock has continued on a downward spiral from its March IPO. Source: Alex Millauer / Shutterstock.com Investors remain concerned about its pathway to profitability. At the moment, it expects to hit EBITDA profitability by the end of 2021, but if you only work with GAAP numbers, that extends out to 2023. Naturally, that's been a big headwind for America's second-largest ride-hailing app behind Uber (NYSE:UBER). InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt turns out that Barclays Capital might have an answer to Lyft's problems.Recently, it analyzed 2.4 billion taxi and ride-hailing trips in New York City to get a better grip on when Lyft would become profitable. What it found out might surprise you. Higher Prices Wouldn't Hurt LyftAfter looking at the data, analysts Jeffrey Meli, Adam Kelleher, Ryan Preclaw, and Ross Sandler found that if Lyft raised prices for its rides, volumes would only drop by a small amount, while the extra revenue would help it generate an operating profit. * The 10 Worst Dividend Stocks of the Decade As an interesting aside, the analysts found that the introduction of ride-hailing services into the least gentrified areas of New York City actually increased the number of rides taken in those neighborhoods, suggesting that companies such as Lyft and Uber are actually making a positive contribution to society by adding to transportation infrastructure. Social messages aside, let's consider the numbers based on Barclays' suggestion higher prices won't dramatically hurt volumes. Lyft's Latest QuarterAt the end of September, Lyft had 22.3 million active riders. It generated $42.82 in revenue per active rider, $9.19 more than in the same quarter a year earlier and $3.06 greater than in the second quarter. It defines active riders as follows:"We define Active Riders as all riders who take at least one ride on our multimodal platform through the Lyft App during a quarter. An Active Rider is identified by a unique phone number. If a rider has two mobile phone numbers or changed their phone number and such rider took rides using both phone numbers during the quarter, that person would count as two Active Riders."While Lyft doesn't reveal the total number of rides taken in a quarter, the active rider statistics give us a good idea. Let's assume that the average Lyft ride costs $12.53. I'm using a figure for 2015, but I would doubt the figure's changed dramatically given both ride-hailing apps have been elbowing for market share.This means that the average active rider might take 3.4 trips per quarter using Lyft. Based on this average, let's assume that the average cost of a Lyft ride is increased by 20% from $12.53 to $15.04. Let's also assume that this reduces the number of trips taken by 5% from 3.4 to 3.2 per quarter. So, if the number of active riders remains the same at 22.3 million, the revenue per active rider increases to $48.13 from $42.82, and Lyft's total revenue increases by 12.3% in the quarter to $1.07 billion from $955.6 million. In the third quarter, Lyft had an operating loss of $490.9 million. Subtract the $117 in additional revenue from the 20% increase in the cost of the average Lyft ride and you start to see a pathway to profitability. What Does This Mean for LYFT Stock Price? One thing my back-of-the-napkin calculation didn't take into account is the many ways in which Lyft is working to boost its margins. For example, the company's contribution margin in the third quarter was 50%, 500 basis points higher than in the same period a year earlier. Should the company continue to increase the contribution margin, operating profits would most certainly come sooner. In October, I argued that given there were plenty of companies already making money with revenues similar to Lyft's, this reality made LYFT stock a poor second choice. And as I stated back then, while analysts love Lyft, I don't.That said, the Barclays analysts make a very good argument, and while I still wouldn't own it, that doesn't mean you shouldn't. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Worst Dividend Stocks of the Decade * 7 Game-Changing Tech Stocks to Buy Now * 5 Chinese Stocks to Buy for the Big 2020 Rebound The post Higher Prices Very Well May Be the Savior of Lyft Stock appeared first on InvestorPlace.

  • Barrons.com

    50 Million Airpods, and Two More Numbers to Know

    The U.S. and China reach a limited trade deal, and Apple could be headed for very happy holidays. In the world of IPOs, things have been a little topsy-turvy this year.

  • Barrons.com

    ‘Transportation Is Broken.’ Cruise CEO’s Blog Post Offers a Glimpse Into the Future of Self-Driving Cars

    Dan Ammann, CEO of General Motors’ Cruise automation division, rallied against the automobile’s place in society.

  • Lyft (LYFT) Stock Sinks As Market Gains: What You Should Know
    Zacks

    Lyft (LYFT) Stock Sinks As Market Gains: What You Should Know

    In the latest trading session, Lyft (LYFT) closed at $46.60, marking a -1.6% move from the previous day.

  • Lyft expands rental car program in San Fran Bay Area, Los Angeles
    Reuters

    Lyft expands rental car program in San Fran Bay Area, Los Angeles

    Lyft introduced a rental option via its app to targeted users in the two metro areas last spring, and is now widening the eligible pool of users, a spokesman said. The company said in a blog post that the rental cars will be available via its app to select users who are at least 22 years old. Lyft runs the offer without the involvement of any existing car rental companies, the spokesman said.

  • Lyft Starts California Car-Rental Service in Blow to Hertz, Avis
    Bloomberg

    Lyft Starts California Car-Rental Service in Blow to Hertz, Avis

    (Bloomberg) -- Lyft Inc., whose ride-hailing service has been a frenemy of car-rental companies, just got a little less friendly with the likes of Hertz Global Holdings Inc. and Avis Budget Group Inc.Lyft said Thursday it’s testing out a car-rental service in Los Angeles and San Francisco and offering unlimited miles as an inducement. The announcement did little for its stock but sent Hertz and Avis shares plunging.While the rise of Lyft and Uber Technologies Inc. raised existential questions for more than century-old rental companies like Hertz and Avis several years ago, both companies have benefited recently by making their cars available to drivers that the ride-hailing services must keep adding to help support their growth. Avis even forged formal partnership with Uber in early 2017 and Lyft last year.Hertz and Avis can breathe easily for a while, said Hamzah Mazari, a Jefferies analyst who rates Avis a buy and Hertz a hold. Building up a big network of cars and rental lots is expensive, and Lyft doesn’t have the balance sheet to do it quickly.“I think the reaction is overblown,” Mazari said by phone. “Lyft doesn’t have a whole lot of capital so they won’t be able to take this nationwide. They are capital constrained, so I’m not too worried about it.”Representatives for Hertz and Avis didn’t immediately respond to requests for comment. The two erased gains following Lyft’s announcement, with Hertz ending the day down 4.8% and Avis dropping 4.4%.Lyft Rentals is a limited experiment that may change, according to the San Francisco-based company’s website. The smartphone app-based service won’t require a stop at a rental counter and will charge market rates for gasoline. Lyft also is offering $20 credits for transport to rental cars and discounts for Monday-through-Thursday use.To contact the reporters on this story: Chester Dawson in Southfield at cdawson54@bloomberg.net;David Welch in Southfield at dwelch12@bloomberg.netTo contact the editor responsible for this story: Craig Trudell at ctrudell1@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Lyft’s rental-car plans broadside Hertz and Avis stocks
    MarketWatch

    Lyft’s rental-car plans broadside Hertz and Avis stocks

    The rise of ride-hailing companies has hurt the rental-car giants, and now Lyft Inc. wants to get into their game even more.

  • GuruFocus.com

    Why Is Citron's Andrew Left Betting Against Peloton?

    The activist short seller takes aim at the latest fitness fad Continue reading...

  • Lyft launches rental option on app
    Reuters

    Lyft launches rental option on app

    Lyft Inc on Thursday launched a rental option on its app that will allow certain riders in San Francisco Bay Area and Los Angeles to rent cars, the ride-hailing company said on a blog post. The loss-making company and its larger rival Uber Technologies Inc have over the years relied on heavy subsidies to attract riders, and are also spending to expand into other areas. As rental companies gobble up more and more cars at discounted prices, margins of carmakers like General Motors are imploding, particularly in Sao Paulo, Uber's busiest city in the world.

  • City Hall to negotiate contracts with three scooter companies
    American City Business Journals

    City Hall to negotiate contracts with three scooter companies

    The City Council on Thursday authorized municipal staff to negotiate with three companies to operate electric bicycles or scooters in San Antonio: Lime, under its corporate name, Neutron Holdings LLC; Razor USA LLC; and Bird Rides Inc. The council vote follows a staff recommendation that the three operators each receive a two-year contract with a one-year renewal option at the city’s discretion. Each company can operate 1,000 vehicles initially, limiting the total fleet on municipal streets to 3,000. San Antonio began to see a proliferation of dockless vehicles on city streets in June 2018.

  • Bloomberg

    How’s Your Driving? If You Use an App Insurers Could Be Watching

    (Bloomberg) -- Apps that let you book a ride to work or borrow a car for your next vacation are feeding into a revolution in auto insurance -- while also raising some privacy red flags.Data on everything from how frequently a car is booked, the type of vehicle rented, the destination, the amount of time between making a reservation and the trip, how hard the driver slams on the brakes to how punctual and friendly a person is on the drive could all be fair game for the industry.Startups like Turo Inc. and BlaBlaCar believe they can take this information and use it to find new ways to assess risk and create new businesses tied to auto insurance.“It’s not so much about an individual’s story there, but at an aggregate level across millions of trips, patterns exist that actually predict risk,” Turo’s U.K. head Xavier Collins said in an interview.The famously staid and risk averse auto insurance industry is slowly finding ways to use new types of data analysis to help it make decisions about who to cover, how much to charge and which customers are most likely to leave for a competitor, said Ingo Blöink, a consultant in Germany who was previously the European director of Daimler Insurance Services.Sleeping BeautyA mix of telematics that measure a car’s performance and other publicly available records together with privately garnered “soft data” can be fed into a program to discern patterns. That can create a “microsegment” risk analysis that more finely slices who’s most likely to get into an accident or commit fraud, which could eventually replace most actuaries, Blöink said.“The industry is a sleeping beauty slowly waking up; they’ve not realized that there’s huge potential,” he said. “It will completely change the way risk will be underwritten in the next 10 years.”San Francisco-based Turo and France’s BlaBlaCar already have specialized arrangements with insurers -- Allianz SE, Liberty Mutual and Axa SA -- that offer tailored products to cover drivers who’ve borrowed another person’s car or used the service to transport someone else in their own car.The companies are part of a ride-sharing industry, led by the likes of Uber Technologies Inc. and Lyft Inc., that’s challenging traditional car ownership and rentals. Turo’s platform lets users lend personal cars to others. BlaBlaCar arranges carpools between cities.Privacy QuestionsAt an aggregate level, this type of data is “definitely something that’s of interest to us and we are exploring,” said Martin Hoff, Allianz Automotive’s head of product management and innovation, noting, however, that it isn’t being used currently. A record of good driving from such companies could help new drivers applying for auto insurance, he said.Still, sharing data with the insurance industry, which may already have a lot of information about a user, raises privacy issues, said Ioannis Kouvakas, a legal officer at Privacy International, a British charity that lobbies for privacy rights.It’s difficult to truly anonymize data, and companies could potentially reconstruct identities and use that information in invasive ways. Another big concern is whether customers are aware that they’re sharing data, he said.“There’s a lot of potential for abuse,” Kouvakas said in an interview, adding that people can rarely ever be sure of how their data is used.Consent NeededAllianz’s Hoff said the insurance industry is constrained by regulations on information they can use when assessing applicants, particularly in Europe.That’s largely thanks to the General Data Protection Regulation legislation that requires companies to inform people when their personal data is being used, letting them opt out or object, said Ian De Freitas, a partner at law firm Farrer & Co. who specializes in privacy law.But when identifying markers are stripped out and the data become anonymous, it’s no longer considered private, he said.Turo’s users currently consent to share data that lets the firm determine their likelihood of getting into an accident or making an insurance claim, identify unsafe driving behavior and conduct investigations and risk assessments.The firm’s privacy policy says that the company might collect aggregate data about its users to consider new features. Customers share their drivers’ license information, reviews, street address, employers, schools and location.Smarter InsuranceSimilarly, BlaBlaCar collects details about cars, biographical information, replies to surveys and reviews, and location.Last year, BlaBlaCar announced BlaBlaSure, an insurance product with Axa SA that targets ride-sharers. It’s been rolled out in France, with plans to make it Europe-wide, BlaBlaCar Chief Executive Officer Nicolas Brusson said in an interview. Eventually, this product will use data collected from BlaBlaCar users to help determine rates for new customers.“It seems pretty basic but when you get hundreds of data points from drivers saying a person is a great driver,” Brusson said. “It’s pretty powerful in terms of insurance pricing.”The company is collecting data and finding correlations between data points such as how someone’s driving is rated by other users, and the number of accidents. Customers must opt in to sharing their data with the insurance product, which is combined with information from other users and anonymized, he said.Drawing conclusions from the research to sell insurance is a few years off, Brusson said.“Long term, all these car-insurance products will be smarter because we have lots of data from the community,” he said.To contact the reporter on this story: Amy Thomson in London at athomson6@bloomberg.netTo contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Vidya RootFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • 5 Hottest IPOs of 2019
    Zacks

    5 Hottest IPOs of 2019

    2019 was one of the busiest years for IPOs, and the calendar was packed with big tech unicorns and popular consumer brands. Here are some of the hottest market debuts we saw this year.

  • Did Uber Just Enable Discrimination by Destination?
    City Lab NonHosted

    Did Uber Just Enable Discrimination by Destination?

    In California, the ride-hailing company is changing a policy used as a safeguard against driver discrimination against low-income and minority riders.

  • Investopedia

    3 'Fallen Angel' IPOs That Could Post Giant Rallies

    Several highly-touted IPOs have crashed in price, but a top-rated fund manager sees opportunities to pick up bargains amid the wreckage.

  • InvestorPlace

    Is Twilio Stock Worth More Than $90?

    Twilio (NYSE:TWLO) announced its third-quarter results on Oct. 30. While top- and bottom-line results beat analysts' average estimates, investors didn't like the company's Q4 guidance. They sent Twilio stock below $100 for the first time since early January. In the process, I got egg all over my face. That's because I wrote a piece on Oct. 28 suggesting that investors interested in TWLO stock may want to buy the shares before the company's earnings were out to benefit from a post-earnings pop. InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat "pop" never happened. Despite the positive earnings surprise and the 75% year-over-year increase in its sales, investors chose to focus on the Q4 outlook, which was a little weaker than most analysts had expected. * 10 Best-Performing Growth Stocks of the 2010s It wasn't the revenue guidance that caused Twilio stock to fall more than 12% on the news. Instead, it was the EPS outlook of 1 cent -2 cents, excluding some items, versus analysts' average outlook of 7 cents that got investors' shorts in a knot.And I get it. Investors have become focused on companies' pathways to profitability. Anything that gets in the way of that path is going to create trouble for stocks. Twilio stock isn't any different. Recently, another InvestorPlace columnist, Luke Lango, for the second time in two months, urged investors to get ready to buy Twilio stock at $90That suggestion has me wondering if Twilio is worth $90 or more than that. Why Twilio Stock May Be Worth Only $90 Per ShareLango, the other columnist, wasn't suggesting TWLO stock was only worth $90; he said it was worth buying at $90. There's a big difference. I believe in Twilio's business model and by extension, I'm a fan of TWLO stock. However, the fact that Twilio stock traded as high as $151 in late July and now is having trouble moving above $100 tells me that there is a significant group of investors who believe $90-$100 is a ceiling for Twilio stock now. InvestorPlace writer Josh Enomoto recently discussed some of the company's fundamental weaknesses. Its most significant problem is the $2 billion that it paid for SendGrid. The deal gave the Twilio platform the email integration it sorely lacked, but it also raised investors' expectations. According to Enomoto, "With TWLO, you must separate the technology from the investment thesis. While SendGrid fills a technological gap, it creates one from an investment perspective. Thus, management must deliver outstanding - preferably astounding - growth to justify the SendGrid premium.""What we saw in Q3 was an 'okay' earnings report. But when you're taking big risks, you need big results. That didn't happen, which is why TWLO stock has a credibility challenge."Enomoto goes on to remind InvestorPlace readers that Twilio's customers include Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT) and other money-losing companies that also could see their credibility questioned over the next few months into 2020. In other words, money-losing tech stocks could be in a downward trend for some time, making the near-term outlook of Twilio stock, at best, "cautiously bullish." Why Twilio Stock May Be Worth More Than $90 Per ShareWhen I suggested investors consider buying Twilio stock before TWLO's earnings, I felt a price in the $100s was warranted for TWLO stock. While the Q3 report does raise questions, it's important to recognize that the company is still going to generate more than $1.1 billion of revenue in 2019, with a minimal loss of $5 million. The fact that its revenue jumped 75% year-over-year in Q3 suggests Twilio's platform still has a great deal of traction with companies that are looking to provide seamless communication for their customers. TWLO still has a pathway to profitability. It's just got to continue to execute in 2020. Lango emphasized Twilio's tremendous opportunity:"This company finds itself at the epicenter of a huge shift towards text-based B2C communication. As this mega-trend plays out over the next several years, Twilio's customer base and revenues will march significantly higher."I couldn't agree more. In October, I stated that I liked how Twilio was building its business, including its expensive acquisition of SendGrid. Furthermore, I felt it would generate a profit before too long. The Q3 results haven't shaken this belief. I think its Q3 results (and its Q4 guidance) were business as usual. Investors chose to make a mountain out of a molehill, so TWLO stock is struggling to gain ground. In the life of most public companies, occasional slumps are not unusual. When it comes to TWLO stock, I see the glass as half full. At this time next year, we'll find out if I was right to believe that Twilio stock is worth more than $90.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best-Performing Growth Stocks of the 2010s * 10 Stocks With Little or No Debt to Own for the Next 50 Years * 5 Restaurant Stocks Dominating Holiday Season Foot Traffic The post Is Twilio Stock Worth More Than $90? appeared first on InvestorPlace.

  • Best ETFs for 2020: iShares Russell 2000 Growth ETF (IWO) Is the Best Bet
    InvestorPlace

    Best ETFs for 2020: iShares Russell 2000 Growth ETF (IWO) Is the Best Bet

    This article is a part of InvestorPlace.com's Best ETFs for 2020 contest. Ian Bezek's pick for the contest is the iShares Russell 2000 Growth ETF (NYSEARCA:IWO).Source: Shutterstock Are you ready to party like it's 1999? You should be. The great big bull market of the 2010's is certainly getting up there in age. The skeptics have been calling for its demise for years now. But there's good news: We should have at least one more spectacular year ahead of us before the cycle turns.Why's that? Simply put, generational bull markets tend to end on euphoria. In 1929, for example, stocks became so popular that shoeshine boys were speculating in the market. In fact, so many ordinary Americans had gotten into trading that margin rates to borrow money to buy stocks hit 15% and up annually. There was literally a shortage of available credit because so many Americans borrowed to ride the bull.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn the 1960s, peace and love were in. So was money. Popular magazines were full of stock-picking tips. Young mutual fund managers became rock stars. People believed that the stock market was easy money. Incredibly, the stock market went up from the late 1940s with virtually no interruption until 1973, when the market finally imploded. Consider how that bull market ran for more than two decades before meeting its end.Similarly, the late 1990's mania was just the finishing touches on an amazing 18-year run in which the Dow Jones Industrial Average went from 1,000 to 10,000. Again, for comparison's sake, the S&P 500 would have to go from 666 (the March 2009 low) to nearly 7,000 to make a move of equal magnitude. Suddenly, calls for the S&P 500 to reach 4,000 don't look so silly. The Market Hasn't Topped Yet … 2019 Looks Like 1998The fact is, bull markets end with euphoria. People quitting their careers to take up day trading, as we saw in the late 1990s. That simply hasn't happened yet this time around. Instead, we actually saw a rather sedated market in 2019 where investors dumped shares of the market's most questionable offerings; stocks like Uber (NASDAQ:UBER), Lyft (NASDAQ:LYFT) and Slack (NYSE:WORK) were big busts. WeWork fared even worse. Its initial public offering (IPO) was canceled and the business is seemingly imploding now. * 10 Best-Performing Growth Stocks of the 2010s If you are looking for a comparable point, 1998 might be it. In the fall of that year, the IPO market came to a screeching halt following a sudden market correction. Stocks had dumped due to emerging market problems, which in turn, forced the Federal Reserve to cut rates and pump money into the system. Anything sound familiar? That's right, it's like the Fed cutting rates now to ease the pain of the escalating China trade war.Despite the emerging market problems, the stock market managed to close 1998 with gains in the 20-30% range on the major indexes. That was just setting the stage, however, for the fun that lay ahead. Stocks went absolutely bonkers to the upside in 1999 as the Fed's easy money flood set the stage for limitless upside on internet and other high-growth stocks. By the end of 1999, the tech-heavy Nasdaq Composite was up more than 80% in a single year. The Conditions Are In Place for a Big Run HigherMany bears have been quick to go after the stock market lately. They say trees don't grow to the sky. What goes up must come down. And so on. And they'll eventually be right. But there's no sign that the market needs to top tomorrow.Consider forward earnings. The S&P 500 is selling for less than 18x 2020's projected earnings. That's hardly more expensive than it has been over the past few years; the market was around 17.5x forward earnings when President Trump was inaugurated in January 2017, for example. That means that nearly all the gains in the stock market over the past three years have come due to earnings growth, not rising market valuations.With the Fed now cutting rates again, conditions are in place for a rise in earnings growth next year. The economy remains robust. Just look at consumer confidence or unemployment. Any sign of a trade deal, and things should surge. Don't forget that there's an election in November, and the incumbent has every incentive to try to juice the economy and stock market ahead of the vote. So don't be surprised if there is fiscal stimulus as well; who knows, maybe that rumored huge infrastructure deal will finally come to fruition.In any case, the S&P 500 topped at around 24x forward earnings in 2000. To hit a similar valuation level today, the S&P would have to surge to more than 4,200, or more than 25% upside from today's prices. That's even if earnings don't pick up next year. There's no guarantee we'll get to a 2000-level peak of enthusiasm before the market tops, but if the 1920s, 1960s and 1990s are any guide, things will end with more excitement than we have right now. The Best Way to Play This? Small-Cap GrowthIf you're full-on bullish on the market, your first instinct might be to purchase mega-cap growth stocks. They've led the stock market up so far, so why do something else? The thing is though, the so-called FAANG stocks can't keep leading the market forever. For example, Apple (NASDAQ:AAPL) is up 70% year-to-date and is already worth more than a trillion dollars. It won't realistically go up 70% again next year. Meanwhile, other popular tech stocks like Amazon (NASDAQ:AMZN) and Facebook (NASDAQ:FB) have started to underperform.That makes sense. Over time, leadership should transition to smaller-cap growth stocks as is often the case in late-cycle bull markets. Thus, my pick for InvestorPlace.com's best ETFs for 2020 is the iShares Russell 2000 Growth ETF (NYSEARCA:IWO). The smaller companies that make up the IWO ETF have far more room for upside as their market caps are typically just a few billion dollars or less. It's much easier to go from $2 billion to $10 billion in a couple of years than from $200 billion to a trillion. * 7 Best Quantum Computing Stocks Trading Today On top of that, this ETF is focused on companies with strong tailwinds at their backs. For example, nearly 30% of the ETF is invested in healthcare companies, which allows it to profit from the revolution in biotech, the huge growth in medical devices and the general demographic aging trend that is giving the whole sector a lift. After that, the ETF has 19% of its capital in industrials, which should do well with the Fed easing again and the economic cycle turning back up. And 17% of the fund is in technology stocks; thus, well over half of IWO is allocated to promising small companies that can get bigger quickly. IWO: Many Great FeaturesAnother reason to like IWO is that it is a large and cost-efficient ETF. Its expense ratio of just 0.24% per year, which makes it highly competitive with other growth funds. It has nearly $10 billion of assets under management, so it has no problems with liquidity or trading slippage. And it is highly diversified; no position makes up more than 1% of the ETFs total assets. So if some software company implodes or a biotech firm's lead drug candidate fails a key trial, it won't matter much to IWO overall.Investors still don't fully believe in this bull market. The IWO ETF is trading almost 5% below its September 2018 peak. Even while the market has easily surpassed last year's highs, pure growth names have lagged to a degree. That sets up a compelling opportunity for 2020, as small growth companies will shine brightly.At the time of this writing, Ian Bezek owned FB stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best-Performing Growth Stocks of the 2010s * 10 Stocks With Little or No Debt to Own for the Next 50 Years * 5 Restaurant Stocks Dominating Holiday Season Foot Traffic The post Best ETFs for 2020: iShares Russell 2000 Growth ETF (IWO) Is the Best Bet appeared first on InvestorPlace.

  • Alphabet Launches Waymo App on App Store to Boost User Reach
    Zacks

    Alphabet Launches Waymo App on App Store to Boost User Reach

    Alphabet (GOOGL) gains momentum in autonomous driving space with the launch of Waymo's ride-hailing app on App store.

  • The Zacks Analyst Blog Highlights: Tesla, Baidu, Lyft, Alibaba and Intel
    Zacks

    The Zacks Analyst Blog Highlights: Tesla, Baidu, Lyft, Alibaba and Intel

    The Zacks Analyst Blog Highlights: Tesla, Baidu, Lyft, Alibaba and Intel

  • Hertz and Avis slide after Lyft announces car rental service
    Yahoo Finance Video

    Hertz and Avis slide after Lyft announces car rental service

    Lyft is getting into the car rental space, allowing guests to be able to rent a vehicle without visiting a counter. Yahoo Finance's Seana Smith and Heidi Chung discuss.

  • Lyft unveils car rental service, access from app
    Yahoo Finance Video

    Lyft unveils car rental service, access from app

    Lyft is testing a car rental service in L.A. and the Bay Area. The rental service will be accessible from the app and users will get a $20 dollar credit to get to the vehicle.

  • Lyft announces car rental service
    Yahoo Finance Video

    Lyft announces car rental service

    Lyft is getting into the car rental business. The company announced that rental options will be available on its app for drivers as young as 22 years old, starting in Los Angeles and San Francisco. 

  • What’s next for IPOs in 2020
    Yahoo Finance Video

    What’s next for IPOs in 2020

    2019 has been a big year for IPOs, with major companies like Uber and Lyft going public. EY’s U.S. Venture Capital Leader Jeff Grabow joins Yahoo Finance’s Alexis Christoforous and Brian Sozzi to discuss how IPOs will shape out in 2020 on The First Trade.

  • Bill.com soars in trading debut
    Yahoo Finance Video

    Bill.com soars in trading debut

    The latest company to enter the public market is the business-to-business payments company Bill.com. Founder & CEO René Lacerte joins Yahoo Finance’s On The Move panel from the New York Stock Exchange to discuss the company’s market debut.