What are Lupa Stocks?

LUPA Stocks 

 

Companies often LUPA stocks, also known as PAUL Stocks refer to the stocks of 4 companies that were launched in the generation of mobile applications. 

 

In recent years, these 4 companies - Lyft, Uber, Pinterest, and Airbnb have completed their Initial Public Offerings (IPOs) and are being successfully traded in the stock exchanges. A number of reasons can be listed when it comes to LUPA stocks. 

 

Firstly, all 4 stocks are tech-based companies. This means that all of these companies operate in the same field. 

 

Another similarity between these stocks is that all of these companies were primarily unicorn companies (all 4 companies were worth $1bn each). 

 

Thirdly, all of these companies enjoy massive popularity in the market owing to their success and unstoppable growth in recent times. 

 

Apart from this, these companies have pushed a major change in the way our lives work, making a revolutionary statement in the market. In a way, LUPA stocks represent a family of stocks that continue to play a major role in the modern technology era. 

 

Despite major commonalities between these stocks, investors trade these stocks separately. In the coming segments, we shall discover about these 4 companies. 

 

(Suggested blog: Top 15 US IPOs of All Time)

 

 

LUPA Stocks: 4 Segments

 

1. Lyft

 

A transportation company, Lyft extends its services for driving and riding to the masses at pocket-friendly prices. Based in San Francisco, Lyft was earlier known as Zimride in 2008. 

 

Out of all the LUPA stocks, Lyft has the smallest market cap of $15.73. As the country aims to provide the best transportation to the masses, it began trading on March 29, 2019. 

 

The first-ever ride-offering company to be traded, Lyft was welcomed in the stock market with much positivity and encouragement. Even though the company is renowned for its market share in the USA and Canada, 

 

Lyft has hardly recorded any profits as per its stock market analysis. This is because the company, in competition with Uber, has only managed to cut down its costs and maintain a meager turnout after paying off driver salaries, automobile rents, and settling other factors. 

 

Yet, the company has a positive cash flow that truly demarcates its presence in LUPA stocks. Lyft is traded by the code of LYFT in NASDAQ. According to the Lyft stock forecast, the performance is expected to remain constant. 

 

“Shares of Lyft soared 8.7% in its first day of trading after opening at $87.24, well ahead of its initial public offering price of $72 per share. But the stock has taken quite a hit since completing the IPO.”

Lyft Stock Success 

 

2. Uber

 

The name ‘UBER’ comes from a German word, meaning ‘ above all the rest’. Another transportation company that has a worldwide base, Uber was founded in 2009 by the name of UberCab. 

 

The biggest competitor of Lyft, a ride-sharing company, Uber has been able to reach its target audiences quite rapidly and enjoys massive popularity among its customers from around the world. 

 

With a market cap of $86.46bn, the company began trading  in May 2019 with the Uber stock price of $45 per share. 

 

Despite repeated conflicts in its workplace culture, the company’s success has soared high amidst the increasing demands of ride-sharing services in an uber-cool decade! 

 

Founded by Garrett Camp, Oscar Salazar, and Travis Kalanick, Uber continues to be one of the topmost choices of people across the world when it comes to transportation and ride-sharing. 

 

A subtle realization of the founders of the company led to the birth of Uber. By struggling to find a cab at night in Paris, they thought how easy it would be if technology could help people find cabs and transportation facilities around their localities. 

 

That led to the birth of Uber, which eventually became a huge success. The business model of the company is fairly easy to understand. By hiring drivers who use their own vehicles on a commission basis, Uber lets people find cars in the vicinity with the help of its mobile application. 

 

A total of 25% of the total fare is charged when a driver-partner accomplishes a ride. 

 

“While Uber does not have its own cars, Uber drivers use their own cars to provide cab services and pay a percentage of every fare received as commission to Uber.”

Success Story of Uber  

 

When it comes to the future of the company, the topmost officials suggest that the company is working on the launch of ‘UBER ELEVATE’, which will be an aerial ride-sharing facility. 

 

While one of the biggest Uber competitors is Lyft, Uber still has a larger fanbase. 

 

(Must read - 5 Uses of Machine Learning in Uber)  

 

3. Pinterest

 

The third of the LUPA stocks, Pinterest is a photo-sharing app that lets its users pin photos for later use. Based in San Francisco, Pinterest has a worldwide audience base. 

 

It was founded by the entrepreneurs - Ben Silbermann, Paul Sciarra, and Evan Sharp. A social media platform that has gained popularity as a photo-sharing application, Pinterest can be accessed through mobile apps for Android and iOS. while an individual is on the move. 

 

With a market cap of $29.40bn, Pinterest, one of the fastest-growing unicorn companies 2020, allows people to upload-download wallpapers, designs, photos, and many other categories of photographs. 

 

The company's performance in the stock market has increased over time ever since it completed its IPO in April 2019. With a wide fanfare worldwide, the company has reached its apex of popularity as almost every person has the application installed on his/her mobile. 

 

Data suggests that the monthly user growth rate increased from 26% to 37% (2019-20). This increase in the company's popularity was generated as the world entered into an era of the COVID-19 global pandemic. 

 

Since people were locked down in their houses, they relied on Pinterest for surfing through realistic photographs. 

 

The application also plays a big role in influencing photographic trends that people can access at any time and anywhere. 

 

(Also Read - Artificial Intelligence in Pinterest) 

 

4. Airbnb

 

Are you that person who has a hard time looking for homestays and hotels that do not burn holes in your pocket? Well, Airbnb is the one-stop portal for all such worries. 

 

Traded by the code of ABNB in NASDAQ,  Airbnb was founded in the year 2008 for promoting peer-to-peer short-term rentals for staycations. Budget-friendly, safe and secure, and quality homestays, Airbnb lodges are the perfect fit for travelers around the world. 

 

Founded by Brian Chesky, Joe Gebbia, and Nathan Blecharzyk, the Airbnb stock completed its IPO in December 2020. Ever since its launch, the concept of renting affordable and quality homestays for travel and tourism purposes has attracted the masses from all around the world. 

 

Currently, the company's market cap rests at $107.93bn.  Ranked as the world's 147th most significant company in terms of market value, Airbnb has successfully managed to compete against hotel lobbyists and leading hotel chains in the world. 

 

The competition has increased so much that hotel chains in New York had to unite against the company, leading to its reduced ability to operate in the city. 

 

Still, the company enjoys unbeatable success when it comes to affordable stays since a lot of travelers opt for pocket-friendly stays in safe and secure localities that connect them well to the best tourist spots. 

 

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Summing Up

 

When it comes to the future of the LUPA stocks, investors suggest that all these 4 companies have a bright future in comparison to other start-ups and companies that have emerged lately. 

 

Here are a number of factors that make LUPA stocks significant and worthy of investment. 

 

1. Trending Businesses

 

One of the biggest factors that make these stocks important is that they are all trending businesses. While ride-sharing applications like Lyft and Uber are the topmost choices for professionals, students, and adults alike, Pinterest holds a significant hold in the market due to its photo-sharing facilities. 

 

On the other hand, Airbnb is a separate success as it helps travelers to save money, stay well, and make quality memories without sacrificing much. 

 

What makes these businesses even more popular is the fact that they rely on technology that does not shy away from connecting people from all corners of the world. 

 

For instance, traditional car rental services required one to visit taxi offices and go through a tiresome booking journey. However, that's not the case with Airbnb. 

 

Thanks to technology, Airbnb lets an individual sitting in India connect with a person in Portugal and enquire about a homestay that s/he is intending to rent for a few days. 

 

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2. Strong Fanbase

 

Another very important factor that makes these stocks successful is that they have a strong fanbase. For any company to do well in the market, it is important that it's target audience responds well to its marketing stints and places its faith in the company's ability. 

 

Something similar has happened with these stocks as well. While there is no doubt that they are trending businesses, they also have a strong fanbase that keeps their users hooked to them. 

 

While Lyft lags behind in this sense due to its restricted presence in the global scenario, Uber has a long way to go with its worldwide presence and quality performance. 

 

Similarly, Pinterest has created an over-the-top fanbase that makes it so beloved among its virtual family. In addition, Airbnb is a trusted and verified portal for renting homestays and lodges without any hassles. A strong endorsing crew and even more attractive reviews have led Airbnb virgins to discover its magic. 

 

To conclude, LUPA stocks had earlier emerged as unicorn start-ups that have a long way to go in the public market. Even though their fanbase is quite strong, their respective performances in the public markets suggest otherwise. 

 

(Must catch: Unicorn Startups in India and US 2020)

 

Despite many obstructions that await them, Lupa stocks are sure to go a long way with wide fan bases and emerging sister start-ups.