Analyst on why Lyft is a 'no man's land' stock
Angelo Zino, CFRA analyst, joins The Final Round to discuss the tech sector and the latest with Lyft and Uber.
Video Transcript
JEN ROGERS: Let's dive into some of these tech names. I want to bring in our first guest right now, Angelo Zina-- Zino, CFRA analyst. So Angelo, let's talk about Lyft right now to start, because I think this had a lot of people's attention early in the day.
Now the news right now-- look, you're-- it looks like you're going to be able to take a Lyft ride in California tomorrow. An appeals court has granted Uber and Lyft a temporary reprieve. That is going to mean that they don't have to-- Lyft told us they were going to shut down tonight.
But this story is not going away. What does it mean for Lyft and for people that hold this stock? What do they need to be aware of? Does this have a happy ending for Lyft?
ANGELO ZINO: I think we'll find out come November. And I really think kind of [INAUDIBLE] [AUDIO OUT] because right now, I mean, Proposition 22 is really what matters right now. If the voters come out and vote in favor of Proposition 22, I think then you have Uber and Lyft kind of operating in the environment that they once had. And that's ideally what they want to see. [AUDIO OUT]
To kind of operate in an environment where that wasn't the case, one of a number of things will happen. One, they just won't operate there. They'll just shut down. Or two, they'll have to find some sort of [AUDIO OUT]. It remains to be seen exactly what that's going to look like. But there is no way that they can operate in an environment right now where they have to treat these [AUDIO OUT] [INAUDIBLE].
So that's why you kind of saw Lyft essentially come out there and say, hey, listen, we're going to have to shut down. Uber probably was going to do the same thing. I think this is definitely positive news, at least in the [AUDIO OUT]
JEN ROGERS: Hey, Angelo, I'm going to-- I keep talking to you, but I just want to let you know your audio is coming in and out a little bit. So if something happens, I might jump. But we can't wait till November, can we? What do people do in the meantime, I think, in terms of-- what are you thinking about?
Should anybody be buying this stock right now? Is it too risky to be holding? November is-- I mean, I know some people think the election's around the corner, but it's still kind of far away.
ANGELO ZINO: Yeah, I mean, as far as our view is concerned in terms of Lyft, I mean, it remains a no man's land. It's too risky for us to really [AUDIO OUT] Meantime, we do think Uber long-term is the right way to play this. And that's how we're gravitating investors. We think it's got a great, long-term, secular story.
We love the delivery business. We do think you get a vaccine out there, that's a monster [AUDIO OUT]. And then, of course, investors otherwise will need to wait to till November to get some sort of clarity in terms of the regulatory side of things, at least as far as California [AUDIO OUT] [INAUDIBLE]. If they lose the case in terms of California, there could be a trickle-down effect across other states in the nation. And that's, of course, the last thing we want to see for investors [AUDIO OUT]
JEN ROGERS: All right, Angelo, we're going to leave it there. Angelo Zino is CFRA analyst. Great talking with you about Lyft and Uber. Thanks so much.
ANGELO ZINO: All right, thanks for having me.
