Lyft Tumbles on Disappointing Outlook; JPM Lowers Price Target

Shares in Lyft (LYFT) are tumbling Wednesday, after the ride-hailing company projected first-quarter bookings that lagged estimates as a price war with rival Uber Technologies (UBER) persists.

The ride-hailing company said it expected first-quarter gross bookings of around $4.05 billion to $4.2 billion “amidst the recent pricing environment in the U.S. market.” That compared with consensus estimates from analysts polled by Visible Alpha before the results were released of $4.23 billion. 

Uber also recently reported a current-quarter gross bookings outlook came in mostly below analysts’ estimates.

JPM Lowers Price Target on Lyft to $16

Lyft’s results come as the loss of its partnership with Delta Air Lines (DAL) looms over the company this spring.

In a note Wednesday, JPMorgan analysts lowered their price target for Lyft to $16 from $19, saying that  it believed Lyft “is facing an increasingly competitive rideshare landscape.” The analysts said they expect Lyft results to be “pressured” through the first half of 2025 and the company would have to overcome the loss of the Delta partnership “which also calls into question the ability to grow GBs (gross bookings) in the mid-teens annually through 2027.”

Lyft reported mixed fourth-quarter results Tuesday, with revenue of $1.55 billion lagging estimates, while its adjusted earnings per share (EPS) of 27 cents beat forecasts.

Lyft shares are down around 11% Wednesday at about $12.75 each and have edged up 2% in the past year.

UPDATE—Feb. 12, 2025: This article has been updated to include refreshed share prices.