{"id":39593,"date":"2025-05-10T11:36:07","date_gmt":"2025-05-10T11:36:07","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/05\/10\/analyst-urges-investors-to-act-as-lyft-stock-soars-on-buyback-announcement\/"},"modified":"2025-05-10T11:36:07","modified_gmt":"2025-05-10T11:36:07","slug":"analyst-urges-investors-to-act-as-lyft-stock-soars-on-buyback-announcement","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/05\/10\/analyst-urges-investors-to-act-as-lyft-stock-soars-on-buyback-announcement\/","title":{"rendered":"Analyst urges investors to act as Lyft stock soars on buyback announcement"},"content":{"rendered":"
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Lyft Inc (NASDAQ: LYFT) rallied more than 20% on Friday morning after reporting its financial results for the first quarter<\/a> that topped Street estimates on most fronts.   <\/p>\n

But factors beyond the numbers are contributing to the rise in LYFT shares.<\/p>\n

For starters, the company\u2019s board authorised a significant boost to the stock buyback programme. <\/p>\n

According to Lyft, as much as $500 million of it will be executed over the next year.<\/p>\n

The share repurchase plan indicates management\u2019s confidence in what the future holds for Lyft stock through the remainder of 2025.<\/p>\n

Lyft is not seeing signs of a consumer slowdown<\/h2>\n

Investors are cheering Lyft\u2019s Q1 earnings release this morning also because David Risher, its chief executive, said the American consumer was not showing any signs of a slowdown yet.<\/p>\n

Concerns of a potential recession<\/a> in the back half of this year have been brewing lately in the wake of the Trump administration\u2019s aggressive tariffs on friends and foes alike.<\/p>\n

However, \u201cour team is stronger than it\u2019s ever been, and the consumer demand is absolutely there,\u201d Risher told CNBC<\/a> in a post-earnings interview on Friday.<\/p>\n

Including today\u2019s gain, Lyft shares are up well over 50% versus their low in early April.<\/p>\n

Highlights from Lyft\u2019s Q1 earnings release<\/h2>\n

On Friday, the ride-hailing giant reported a 13% year-on-year increase in gross bookings to $4.16 billion for its fiscal Q1. <\/p>\n

Analysts had called for a marginally lower $4.15 billion instead.<\/p>\n

According to the Nasdaq-listed firm, the total number of rides in the first quarter also went up 16% to 218.4 million, handily beating experts\u2019 forecast of 215.1 million.<\/p>\n

Lyft stock is up also because the San Francisco headquartered firm turned a profit (a cent per share) in its recently concluded quarter, a meaningful improvement from 8 cents a share of loss last year.<\/p>\n

Note that LYFT is not a dividend stock, though.  <\/p>\n

Is it too late to invest in Lyft stock?<\/h2>\n

The only metric on which Lyft disappointed in its fiscal Q1 was revenue that printed at $1.45 billion (up 14% annually). <\/p>\n

Street was at a slightly higher $1.47 billion instead.<\/p>\n

Still, Eric Sheridan \u2013 a Goldman Sachs analyst continues to see upside in LFYT to $20 on \u201ca rapid cadence of product innovation in consumer offerings and rising driver supply affinity enhancing the forward growth trajectory.\u201d<\/p>\n

Sheridan is convinced that Lyft will benefit from self-driving vehicles as \u201cAV operators and fleet owners continue to enter into partnerships<\/a> in the coming years.\u201d<\/p>\n

Last night, Lyft guided for a further mid-teen percentage increase in ride bookings for its fiscal Q2. <\/p>\n

All in all, the investment firm is bullish since the company\u2019s stock price appears \u201cdislocated from its earnings power in the next 2-3 years.\u201d<\/p>\n

The post Analyst urges investors to act as Lyft stock soars on buyback announcement<\/a> appeared first on Invezz<\/a><\/p>\n

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Lyft Inc (NASDAQ: LYFT) rallied more than 20% on Friday morning after reporting its financial results for the first quarter that topped Street estimates on most fronts.    But factors beyond the numbers are contributing to the rise in LYFT shares. For starters, the company\u2019s board authorised a significant boost to the stock buyback programme. <\/p>\n","protected":false},"author":1,"featured_media":39594,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-39593","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/39593","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=39593"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/39593\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/39594"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=39593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=39593"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=39593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}