Lyft, Inc. generated strong free cash flow growth in Q2, and its FCF margins have risen. Even though the stock has risen, it's still off the recent highs. It looks too cheap here. Investors may want to buy in-the-money calls and short OTM puts.
Shares of ride sharing service Lyft (NASDAQ: LYFT)
jumped 9.5% in the afternoon session after the company announced its co-founders, Logan Green and John Zimmer, will step down from the board next year. The rideshare company announced that co-founders Logan Green and John Zimmer will exit the board in August 2025, completing a two-year transition plan. As part of the change, they will convert their special Class B shares to Class A shares, eliminating the dual-class structure and establishing equal voting rights for all shareholders.
The combination will create a leading North American medium-duty electric truck original equipment manufacturer with a full range of Class 4-6 trucks valued at about $105 million, the companies said.
Bullish is the latest crypto-themed company to go public in 2025. But its diversified crypto products aimed at institutional investors make it stand out.
Shares of ride sharing service Lyft (NASDAQ: LYFT)
jumped 3.5% in the afternoon session after a wave of positive analyst commentary pointed to a strong growth outlook. RBC Capital reiterated its Outperform rating on the stock with a $21 price target, citing a confident tone from management regarding the company's future. This sentiment was supported by a Seeking Alpha report highlighting that Lyft has greater upside potential than its rival Uber, due to a more focused operation and a lower valuation. While the company's recent second-quarter results were mixed, with a slight miss on revenue, investors appear to be focusing on the positives, such as record gross bookings, robust rider growth, and operational improvements. Management has signaled a 'thriving marketplace' and expects a stronger second half of the year.
Lyft’s second quarter performance was mixed, falling short of Wall Street’s revenue expectations but delivering stronger-than-expected non-GAAP profits. Management cited robust rider growth and increased engagement, with active riders expanding by 2.4 million year-over-year. CEO David Risher emphasized operational improvements, including a lower driver cancellation rate and growth in high-value partnerships, as key contributors to the quarter’s results. He highlighted, “Our marketplace is thriving, setting us up for an even stronger second half of the year.” Despite the revenue miss, management pointed to record highs in gross bookings and adjusted EBITDA, driven by improved driver retention and new rider acquisition.
Ride sharing service Lyft (NASDAQ: LYFT) fell short of the market’s revenue expectations in Q2 CY2025, but sales rose 10.6% year on year to $1.59 billion. Its non-GAAP profit of $0.30 per share was 6.1% above analysts’ consensus estimates.
The past week saw significant developments in the electric vehicle sector, with Rivian's mixed Q2 earnings, Lyft's stock drop, record EV market share in Europe, Lucid facing near-term challenges, and Tesla dominating used EV sales.
