Lyft (LYFT) Stock Forecast & Price Target

Lyft demonstrated strong financial performance in the recent quarter, achieving record growth in gross bookings (GBs), revenue, active riders, and total rides, all of which increased by double digits and largely met consensus expectations. Notably, active riders surged 18% year-over-year, reaching 28.7 million, while total rides climbed to 249 million, marking a new all-time high and a 15% increase compared to the previous year. Furthermore, the company's optimistic fiscal outlook for 2026, alongside its strategic expansions in the Canadian market, presents a favorable environment for continued growth and margin improvement.

Lyft's ride-sharing business has experienced a decline in ride frequency, with rides per active rider falling to 8.7 year-over-year from 9.0, reflecting weakening user engagement. Additionally, investor confidence has weakened due to a growing concern that Lyft may not meet its long-term growth targets, as core gross bookings are projected to grow at a compound annual growth rate (CAGR) of 12.6%, which is 240 basis points below the company's goal of 15%. Moreover, significant downside risks such as heightened competition from new entrants, regulatory challenges, and persistent cash burn further exacerbate the negative outlook on Lyft's stock performance.