Lyft (LYFT) Stock Forecast & Price Target

Lyft demonstrated substantial growth in key performance metrics, generating record gross bookings, revenue, active riders, and total rides, all of which rose by double digits and aligned closely with consensus expectations. In particular, active riders surged by 18% year-over-year, reaching 28.7 million, while total rides hit an all-time high of 249 million, reflecting a 15% increase year-over-year. The company’s positive outlook is supported by projections of further growth in gross bookings, expected margin expansion, and strategic initiatives to enhance its presence in key markets, especially in Canada.

Lyft's stock outlook has been negatively impacted by a year-over-year decline in rides per active rider, dropping to 8.7 from 9.0, indicating decreased user engagement. Furthermore, investor confidence in Lyft's ability to achieve its growth targets has waned, with projected core business gross bookings suggesting a compound annual growth rate (CAGR) of only 12.6%, falling short of the company's 15% target. Additional risks include increased competition from new entrants, especially autonomous vehicle manufacturers, potential regulatory challenges, and ongoing financial pressures such as rising insurance costs and significant cash burn.