Lyft (LYFT) Stock Forecast & Price Target

Lyft demonstrated solid growth metrics in its latest financial report, recording an 18% year-over-year increase in active riders, reaching 28.7 million, and achieving a total of 249 million rides, marking a 15% increase year-over-year. The company's growth in gross bookings (GBs) per ride, despite a modest increase, alongside expectations of accelerated gross bookings and AEBITDA margin expansion for FY26, enhances its financial outlook. Additionally, potential for improved monetization and share gains, alongside significant cost reductions, suggests Lyft maintains an attractive valuation, positioning it favorably for future growth.

The analysis of Lyft's financial outlook highlights several fundamental concerns, notably a year-over-year decline in frequency of rides per active rider, which decreased from 9.0 to 8.7. Competitive pressures from new entrants, particularly autonomous vehicle manufacturers, coupled with regulatory uncertainties and higher insurance costs, pose significant risks to Lyft's market share and profit margins. Furthermore, substantial discrepancies between consensus estimates and Lyft's ambitious gross bookings and EBITDA targets indicate heightened execution risk amidst ongoing cash burn and challenges in expanding beyond its core markets.