Lyft (LYFT) Stock Forecast & Price Target

Lyft has demonstrated significant growth in key performance metrics, with record gains in gross bookings, revenue, active riders, and total rides, all of which aligned closely with market expectations. The company reported an 18% year-over-year increase in active riders, reaching 28.7 million, alongside an all-time high of 249 million rides in the third quarter, up 15% year-over-year. With positive projections for fiscal year 2026, including anticipated acceleration in gross bookings and EBITDA margin expansion, Lyft's financial outlook indicates substantial potential for increased valuation and market share.

The financial analysis indicates a negative outlook for Lyft's stock, primarily driven by a year-over-year decline in the frequency of rides per active rider, which decreased from 9.0 to 8.7. Additionally, Lyft faces significant downside risks, including intense competition, particularly from new entrants like autonomous vehicle manufacturers, and potential regulatory changes that could impact operations and margins. Moreover, Lyft's ambitious targets for gross bookings and EBITDA appear increasingly unattainable, as consensus projections fall well short of the company's estimates, highlighting concerns regarding execution and market traction, especially in international markets.