Lyft (LYFT) Stock Forecast & Price Target

Lyft has demonstrated robust growth, achieving record levels for gross bookings, revenue, active riders, and total rides, all of which grew by double digits and aligned closely with consensus expectations. Notably, active riders increased by 18% year-over-year, reaching 28.7 million, and total rides hit an all-time high of 249 million, reflecting a significant acceleration in user engagement. Furthermore, Lyft's strategic initiatives, including recent acquisitions and expansion plans in Canada, are expected to drive further growth in gross bookings and contribute to EBITDA margin expansion, underpinning a positive outlook for the company's financial trajectory.

Lyft's financial outlook is negatively impacted by a year-over-year decline in ride frequency per active rider, which has decreased from 9.0 to 8.7, indicating reduced user engagement. Additionally, investor confidence has waned due to expectations for core business gross bookings, with projected growth rates falling short of the company's targets by 240 basis points. Compounding these challenges are external risks, including heightened competition from new entrants in the ride-sharing market and ongoing regulatory concerns that could adversely affect margins and operational performance.