Latest news with #LyftInc
Yahoo
10-07-2025
- Business
- Yahoo
Lyft Launches in Puerto Rico in Latest Geographical Expansion
(Bloomberg) -- Lyft Inc. on Tuesday launched its rideshare service in Puerto Rico as the next step in an expansion across North America and Europe. Are Tourists Ruining Europe? How Locals Are Pushing Back Can Americans Just Stop Building New Highways? Denver City Hall Takes a Page From NASA Philadelphia Trash Piles Up as Garbage Workers' Strike Drags On The company began recruiting drivers in late May on the Caribbean island, promising $100 bonuses to those who complete 50 rides in the first month in the capital of San Juan. 'There's obviously a deep connection between many folks who are in mainland in the United States who have connections in Puerto Rico,' said Jeremy Bird, an executive vice president overseeing driver experience and the company's international expansion. He cited demand for Lyft's service from locals, as well as tourists from places like New York and Chicago who were opening the app before service was available. Since the company began signing up drivers there, the number of people checking their Lyft apps has been up more than 30%, Bird said. Shares of Lyft jumped as much as 2.8% after Bloomberg reported on the news. San Francisco-based Lyft has been working to push beyond the US after becoming profitable and free cash flow positive on an annual basis in 2024. It has expanded into the 10 most populous cities in Canada, most recently in Montréal and Québec City. It is also expected to operate in some of the largest taxi markets in Europe, including the UK and Ireland, through its $197 million acquisition one of the region's largest taxi apps, Freenow. The deal is expected to close later this year and would nearly double Lyft's total addressable market, the company said when it announced the deal in April. Lyft does not currently have a corporate office in Puerto Rico, but Bird said the company may open one in the future as it brings in different business functions, such as driver operations and the airports team. In addition to its US offices, it also has some in Toronto and Montréal, Bird said. Lyft's larger ride-hailing rival, Uber Technologies Inc., has long since expanded to more than 70 countries and has adapted its business model to different markets, each of which has different regulations. Uber has similarly made deals and partnerships to increase its market share internationally, including putting taxis onto the app in cities where regulators or labor groups aren't friendly to ridesharing. Lyft's expansion plans mark an inflection point for the company, which cut jobs and carried out a restructuring as it came out of the pandemic with a goal of becoming profitable. Since achieving that milestone last year, the company has been keen to tap additional revenue streams to achieve profits consistently. 'We are looking at the rest of the world and saying where does it make sense? And we'll do exactly what I think we did in Puerto Rico,' Bird said. 'We want to make sure if we're going to expand anywhere that we do it smartly, that we do it tied together with the communities, the regulators, folks on the ground and that we do it in a place that actually makes sense where we're able to make the experience for users better. Obviously there's a lot of opportunity in Latin America and we'll continue to look at that.' (Updates with market reaction in the fifth paragraph.) Will Trade War Make South India the Next Manufacturing Hub? 'Telecom Is the New Tequila': Behind the Celebrity Wireless Boom SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate For Brazil's Criminals, Coffee Beans Are the Target ©2025 Bloomberg L.P. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Bloomberg
08-07-2025
- Business
- Bloomberg
Lyft Launches in Puerto Rico in Latest Geographical Expansion
Lyft Inc. on Tuesday launched its rideshare service in Puerto Rico as the next step in an expansion across North America and Europe. The company began recruiting drivers in late May on the Caribbean island, promising $100 bonuses to those who complete 50 rides in the first month in the capital of San Juan.
Yahoo
03-07-2025
- Business
- Yahoo
Lyft (LYFT) Upgraded to Buy, Crowned TD Cowen's Top SMID-Cap Pick
Lyft Inc. (NASDAQ:LYFT) is one of the 20 undervalued momentum stocks that are taking off. On June 24, TD Cowen analyst John Blackledge upgraded Lyft Inc. to Buy from Hold, raising the price target from $16 to $21. Notably, he named Lyft his 'Best SMID-cap Idea' (small and mid-cap stock idea) for 2025. Blackledge pointed to several key factors behind his upgraded view. One of the main reasons was Lyft's focus on smaller U.S. markets. As per the analyst, cities such as Charlotte and Indianapolis showed over 30% year-over-year growth in Q1 2025, suggesting strength outside the company's traditional top-tier markets. A close-up view of a hand holding a smartphone, using a ride sharing app. International expansion was another reason. The analyst highlighted Lyft's planned acquisition of FREENOW, a European mobility platform, which is expected to contribute roughly €1 billion in annual gross bookings. Growth in Canada has also been notable, up 100% in 2024 and continuing with 50% growth in Q1 2025. The analyst also highlighted that product innovation and improved user experience are also supporting the company's growth. Blackledge pointed to initiatives such as Price Lock, which allows users to lock specific fares while helping Lyft build a base of recurring subscription revenue. The recent partnership with DoorDash is also driving user engagement and expanding the active rider base. Blackledge believes Lyft is executing well and doesn't need to gain market share from Uber, as it currently holds about 30% of the U.S. rideshare market, for its stock to perform. Over the long term, he sees upside from autonomous vehicles, which should expand the overall market opportunity. Lyft Inc. (NASDAQ:LYFT) is a leading ride-sharing and mobility-as-a-service company that connects passengers with drivers through its digital platform. The company operates in major cities across the U.S. and Canada, offering ride-hailing, bike and scooter rentals, and fleet management solutions. While we acknowledge the potential of LYFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and 10 Best Tech Stocks to Buy According to Billionaires. Disclosure: None.
Yahoo
07-06-2025
- Business
- Yahoo
BofA Still Sees Trouble on the Road for Lyft (LYFT)
On June 4, Bank of America Securities analyst Mike McGovern reiterated a Sell rating on Lyft Inc. (NASDAQ:LYFT), with an unchanged price target of $12. While the company has reported some encouraging operating metrics, including record highs in active riders and gross bookings, McGovern remains cautious about its longer-term outlook. His concern centers primarily around rising competitive pressure, especially from emerging autonomous vehicle (AV) platforms such as Waymo and Tesla. These players are expanding their reach and could begin to erode Lyft's market share as they scale up. A busy metropolis street filled with commuters using the company's mass transit ridesharing services. Although Lyft has made some progress with its AV program and fleet management, it still lags behind key competitors in creating strong partnerships. McGovern views this gap as a weakness, particularly in an environment where technology-driven differentiation is becoming increasingly important. While the company has made some operational improvements and benefitted from product innovations, the analyst expects external threats like autonomous vehicle (AV) disruption to overshadow near-term gains. These concerns support his Sell rating and reflect a more cautious stance on the company's competitive positioning. Lyft Inc. is a transportation technology company that operates a peer-to-peer ridesharing marketplace in the United States and Canada, connecting drivers with riders through its mobile platform. In addition to ridesharing, Lyft offers bike and scooter rentals, car rentals for drivers, and access to autonomous vehicle services. While we acknowledge the potential of LYFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Globe and Mail
13-05-2025
- Business
- Globe and Mail
Lyft's Cash Flow Soars - But So Has the Stock - Is it Still a Buy?
Lyft Inc. (LYFT) produced strong Q1 results with record trailing 12-month (TTM) free cash flow in an after-hours earnings release on May 8. Since then, LYFT stock has skyrocketed. It may have discounted the good news. But if LYFT keeps making high FCF margins, it could rise further. LYFT closed at $17.21 on Monday, May 12, up from $12.58 on May 7 (+36.8%) before the earnings came out. It's now up to where it was before the sell-off in April, but still below its 6-month high of $18.59 on Nov. 11, 2024. But does it still have more to go? Let's look at the results. Strong Free Cash Flow Generation Lyft reported that all its growth metrics were significantly higher than last year, and most were equal to or just slightly lower than last quarter. Its supplemental data deck shows these stats for gross bookings, quarterly rides, and riders. For example, quarterly revenue at $1.45 billion was up +13.6% YoY, but down slightly from Q4 revenue of $1.55 billion (-6.45% QoQ). Moreover, even though adjusted EBITDA (a measure of cash flow not including capex and working capital changes) was down slightly QoQ, its free cash flow (FCF), which includes these flows, was significantly higher. This can be seen in the table on page 16 of the deck: It shows that in Q1 Lyft generated $240 million in FCF. That represents an amazing 19.4% of Lyft's Q1 revenue, vs. just 9.0% in Q4 and 9.96% in Q1 2024. In other words, its FCF has doubled, indicating the company has been squeezing more cash out of its operations. (In all fairness, the dip in Q4 FCF and FCF margins may have been an anomaly.) In fact, over the trailing 12 months (TTM), LYFT has generated $920 million in FCF as seen on page 13 of its deck. This has been growing exponentially. It also represents 15.4% of almost $6 billion in TTM revenue. As a result, if LYFT continues to generate between 15.4% and 19.4% FCF margins over the next year, we can expect that FCF will continue to soar. We can assume that it could come in at least 18% of the FCF of the estimated sales forecasts from analysts. For example, Seeking Alpha shows that 40 analysts have an average revenue 2025 forecast of $6.48 billion. And for 2026, they forecast $7.20 billion in sales. As a result, FCF estimates are: 18% x $6.48 billion (2025 revenue est.) = $1.1664 billion FCF 2025 18% x $7.20 billion (2026 revenue est.) = $1.296 billion FCF 2026 This can help us set a price target, using an FCF yield metric. LYFT Stock Price Targets For example, LYFT now has a $7.234 billion market capitalization. That means that its TTM FCF of $920 million represents 12.7% of that market value (i.e., its FCF yield). That is the same as a multiple of 7.87x FCF (i.e., 1/0.127 = 7.874). As a result, applying a 12.7% yield to the FCF forecasts results in a market cap forecast: $1.1664 billion FCF (2025 est.) / 0.127 = $9.165 billion mkt cap $1.296 billion FCF (2026 est.) / 0.127 = $10.204 billion mkt cap target So, over the next 12 months (NTM), LYFT could be worth between $9.1 billion and $10.2 billion. That is between +26.7% and +41% higher than its present $7.2 billion mkt cap. That implies its price target is still higher than today's price, i.e., between $21.81(i.e., 1.267 x $17.21) and$24.27 (1.41 x $17.21) per share, or $23.04 on average. Just to be conservative, let's apply a higher FCF yield (i.e., a lower multiple). For example, using a 15% FCF yield (i.e., a 6.67x multiple): $1.1664b x 6.667 = $7.78 billion market cap (2025 est), +7.5% over today $1.296b x 6.667 = $8.64 billion mtk cap (2026 est.), + 19.4 % higher The price target range for this more conservative forecast is $18.50 per share (+7.5%) to $20.55 (+19.4%), or $19.53 on average. In other words, LYFT is worth somewhere between $19.53 and $23.04, depending on the FCF multiple used (i.e., 7.8x or 6.7x). Analysts seem to agree. For example, 38 analysts surveyed by now have an average price target of $22.00 per share. The bottom line is that LYFT still has further to go on the upside, especially if its free cash flow and FCF margins remain strong over the next 12 months. How to Play LYFT Stock It's not uncommon for a stock that has risen so far so fast to take a beat. Normally, I would recommend shorting out-of-the-money (OTM) puts to set a lower buy-in target. But it may make sense to just watch things here. For example, the June 13 expiration put option chain shows that the $16.00 strike price, 7% below Monday's closing price, has a midpoint premium of 46 cents. That represents a cash-secured short-put yield of 2.875% over the next month (i.e., $0.46 / $16.00 = 0.02875). The problem is that Lyft stock could drop over the next month simply from profit-taking. This is even though it's worth more, as I have shown, and despite its low delta ratio of 27.5% and a $15.54 breakeven point (i.e., $16.00-$0.46). That is 9.7% below Monday's close of $17.21. As a result, an investor might have a chance to make the same or better yield at a lower strike price. For example, if the $15.00 strike ends up with a 40 cents premium (up from 22 cents), the short-put yield is 2.667% and the breakeven point is $14.60 (i.e., -15% lower). So, I recommend watching LYFT over the next 2 weeks and setting a buy-in target price. Over the next 12 months, there is a good likelihood of making a profit on LYFT at today's or a lower price.
