Key Stats for Lyft Stock
- Pre-market Price Change for Lyft stock: 7.5%
- $LYFT Share Price as of Nov. 5: $20
- 52-Week High: $23.50
- $LYFT Stock Price Target: $20.18
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What Happened?
Lyft (LYFT) stock is up more than 7% in pre-market trading after the ride-hailing company swung to a profit in the third quarter and issued strong fourth-quarter bookings guidance that topped Wall Street expectations.
Lyft reported earnings of $0.11 per share, a significant turnaround from the $0.03 per share loss it posted in the same quarter last year.
Gross bookings reached $4.8 billion, surpassing the $4.7 billion analysts had expected, while revenue totaled $1.69 billion, in line with estimates but representing the company’s highest quarterly revenue to date.
For the holiday quarter, Lyft guided to gross bookings between $5.01 billion and $5.13 billion, well above the $4.98 billion consensus.
CEO David Risher highlighted several growth drivers, including the company’s expansion into underpenetrated U.S. markets, such as college towns, which accounted for roughly 70% of the total growth in Q3.
Lyft also highlighted its international expansion through the Freenow acquisition in Europe, which is expected to add over six million riders by 2026.
Additionally, Lyft announced a new partnership with United Airlines that allows riders to earn miles on eligible trips, targeting lucrative corporate and airport travel.
Adjusted EBITDA came in at $138.9 million, slightly below the $140 million estimate but up 29% year-over-year.
Lyft generated over $1 billion in trailing twelve-month free cash flow for the first time in its history.
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What the Market Is Telling Us About LYFT Stock
The positive reaction to Lyft stock shows investors are gaining confidence in the company’s turnaround strategy after two challenging quarters earlier this year. The shift to profitability and strong cash flow generation marks a significant milestone.
“After two rough quarters, Lyft is growing year-over-year earnings and sales at a double-digit clip—evidence that the company’s comeback strategy is working,” said Andrew Rocco, stock strategist at Zacks Investment Research.
Lyft’s upmarket push is paying off as high-margin premium rides jumped 50% in Q3, and the United Airlines partnership positions the company to capture more business travelers.
It is also making strategic bets on autonomous vehicles through partnerships with Waymo and others, which could provide long-term competitive advantages.
CEO Risher emphasized that smaller U.S. cities and college towns represent sizeable opportunities. Lyft deployed targeted back-to-school programs that generated outsized results compared to growth in larger markets.
With underpenetrated markets accounting for about two-thirds of the 161 billion personal vehicle trips taken annually in North America, there’s plenty of room to grow.
Lyft stock has now gained 56% year-to-date, significantly outperforming the broader market. The company’s active rider base reached an all-time high, and driver hours on the platform also hit record levels.
One headwind investors should watch is California insurance reform (SB 371), which takes effect in 2026.
While Lyft expects to pass savings from lower insurance requirements on to riders to stimulate demand, the timing and magnitude of that impact remain uncertain.
Despite trailing larger rival Uber in scale, Lyft’s narrower focus on ride-hailing appears to be an advantage.
Lyft can dedicate all its resources to improving the core product rather than managing food delivery and other businesses.
With multiple growth catalysts converging—international expansion, underpenetrated markets, premium services, and AV partnerships—the comeback story looks increasingly credible.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
