Lyft (LYFT) Sees Surge in Bullish Options Activity

Lyft (LYFT, Monetary) is experiencing heightened bullish sentiment within the choices market, with a notable enhance in name buying and selling. A complete of 9,931 name contracts exchanged arms, surpassing expectations by 20%, and resulting in an increase in implied volatility to 83.37%. Probably the most traded choices embrace the January 2026 $15 calls and October 2025 $16 calls, contributing practically 2,100 contracts to the entire quantity. The present Put/Name Ratio stands at 0.62, indicating a stronger choice for calls over places. Buyers are gearing up for the corporate’s upcoming earnings announcement, scheduled for Could eighth.

Wall Avenue Analysts Forecast

Based mostly on the one-year value targets provided by 37 analysts, the common goal value for Lyft Inc (LYFT, Monetary) is $16.29 with a excessive estimate of $26.00 and a low estimate of $10.00. The typical goal implies an
upside of 25.82%
from the present value of $12.95. Extra detailed estimate information might be discovered on the Lyft Inc (LYFT) Forecast web page.

Based mostly on the consensus advice from 47 brokerage companies, Lyft Inc’s (LYFT, Monetary) common brokerage advice is presently 2.7, indicating “Hold” standing. The score scale ranges from 1 to five, the place 1 signifies Robust Purchase, and 5 denotes Promote.

Based mostly on GuruFocus estimates, the estimated GF Worth for Lyft Inc (LYFT, Monetary) in a single 12 months is $17.33, suggesting a
upside
of 33.87% from the present value of $12.945. GF Worth is GuruFocus’ estimate of the honest worth that the inventory ought to be traded at. It’s calculated based mostly on the historic multiples the inventory has traded at beforehand, in addition to previous enterprise progress and the longer term estimates of the enterprise’ efficiency. Extra detailed information might be discovered on the Lyft Inc (LYFT) Abstract web page.

LYFT Key Enterprise Developments

Launch Date: February 11, 2025

• Gross Bookings: $16.1 billion for 2024, up 17% 12 months over 12 months.
• Adjusted EBITDA Margin: 2.4% of gross bookings for 2024.
• Free Money Stream: $766 million for 2024.
• This fall Gross Bookings: $4.28 billion, up 15% 12 months over 12 months.
• This fall Adjusted EBITDA Margin: 2.6% of gross bookings.
• This fall Free Money Stream: $140 million.
• 2024 GAAP Profitability: First full 12 months of GAAP profitability.
• Driver Earnings: Almost $9 billion in 2024.
• Rides Development: 15% 12 months over 12 months in This fall.
• Energetic Riders Development: 10% 12 months over 12 months in This fall.
• Q1 2025 Steerage – Gross Bookings: $4.05 billion to $4.2 billion.
• Q1 2025 Steerage – Adjusted EBITDA: $90 million to $95 million.
• Share Buyback Program: $500 million approved by the Board.

For the whole transcript of the earnings name, please discuss with the total earnings name transcript.

Constructive Factors

• Lyft Inc (LYFT, Monetary) achieved all-time highs in rides, riders, and driver hours in 2024, marking its strongest place ever.
• The corporate reported its first-ever 12 months of GAAP profitability and constructive free money circulation for the total 12 months.
• Lyft Inc (LYFT) noticed a major enchancment in driver retention and earnings, with drivers collectively incomes practically $9 billion in 2024.
• The introduction of options like value lock and diminished surge pricing led to riders saving over $400 million in 2024.
• Lyft Inc (LYFT) expanded its high-margin choices, akin to Lyft Black and Lyft SUV, which grew 41% 12 months over 12 months.

Damaging Factors

• Lyft Inc (LYFT) skilled decrease pricing dynamics within the US market beginning late within the fourth quarter, impacting gross bookings progress.
• The corporate’s partnership with Delta is ending in April 2025, which is predicted to affect rides and gross bookings progress.
• There’s a concern concerning the sustainability of decrease pricing and its potential affect on gross margins in 2025.
• Lyft Inc (LYFT) faces competitors from new market entrants like Waymo, which might have an effect on market dynamics in key cities.
• The corporate anticipates a low single-digit proportion level affect on gross bookings if the decrease pricing atmosphere persists.