Lyft (LYFT) Stock Forecast & Price Target

Lyft has demonstrated robust financial performance, achieving record gross bookings (GBs), revenue, active riders, and total rides, all of which experienced double-digit year-over-year growth, aligning closely with market expectations. The company recorded an 18% year-over-year increase in active riders, reaching 28.7 million, while total rides surged to 249 million in the third quarter, marking an all-time high. Additionally, Lyft's strategic focus on expanding its presence in Canada and plans for further acquisitions and margin improvements signal a promising trajectory for future growth and profitability.

The analysis reveals a negative outlook on Lyft's stock primarily due to a year-over-year decline in ride frequency per active rider, which decreased from 9.0 to 8.7. Additionally, investor confidence has waned, with gross bookings growth expectations falling short of the company's long-term target, indicating a stagnation in overall business performance. Lastly, notable downside risks are identified, including intense competition from new entrants and established rivals, regulatory challenges, and a potential increase in insurance costs that may further pressure margins.