Lyft (LYFT) Stock Forecast & Price Target

Lyft has demonstrated strong financial performance, reporting record growth in gross bookings, revenue, active riders, and total rides, with all metrics experiencing double-digit increases. Active riders surged by 18% year-over-year, reaching 28.7 million, while total rides climbed to a historic high of 249 million, indicating a robust demand for its services. The company's positive outlook for FY26, supported by expectations of accelerated gross bookings and margin expansion, enhances its growth potential and attractive valuation in the ride-sharing market.

The financial analysis of Lyft indicates a concerning decline in key operational metrics, particularly the frequency of rides per active rider, which decreased to 8.7 from 9.0 year-over-year. Additionally, the company faces significant downside risks stemming from intense competition, particularly from new entrants in the autonomous vehicle space, as well as challenges related to execution in international markets and potential regulatory changes. Lyft's financial targets also show a troubling gap, with consensus estimates falling significantly short of the company's projections for gross bookings and EBITDA, raising flags about its future profitability and operational efficacy.