Lyft Plunges 9.81% as BofA Downgrades on AV Concerns

On April 3, 2025, Lyft's stock experienced a significant drop of 9.81% in pre-market trading, reflecting a notable shift in investor sentiment.

Bank of America (BofA) has issued a double downgrade on Lyft, citing a loss of confidence in the company's near-term prospects. This decision is partly due to recent data indicating challenges in Lyft's average transaction metrics and the absence of scalable autonomous vehicle (AV) partnerships. Despite recognizing Lyft's long-term potential in the AV ecosystem, BofA's downgrade to an "Underperform" rating underscores concerns about the company's current partnerships and market positioning.

Lyft's recent financial performance, including a 15% growth in gross bookings and a 27% increase in revenue, has not been enough to offset these concerns. The economic backdrop, characterized by weakening consumer confidence and fears of persistent inflation, adds to the uncertainty surrounding Lyft's near-term outlook.