Lyft Stock Tumbles as Bookings and Guidance Disappoint

Lyft Inc. (LYFT) shares plummeted on Wednesday, March 12, 2025, following the company's fourth-quarter earnings report, which fell short of investor expectations. The ride-sharing giant reported a revenue beat but missed on gross bookings and provided weak guidance for the first quarter of 2025. As a result, Lyft's stock price tumbled by 9% in after-hours trading, reflecting investor concerns about the company's growth prospects.

Lyft reported fourth-quarter 2024 revenues of $1.55 billion, which beat the Zacks Consensus Estimate by 0.1%. However, gross bookings for the quarter came in at $4.27 billion, missing the Zacks Consensus Estimate by 1%. The company's adjusted EBITDA margin expanded to 2.6% from 1.8% in the prior-year quarter, but investors were focused on the weaker-than-expected bookings and guidance.

For the first quarter of 2025, Lyft guided to rides year-over-year growth in the mid-teens, gross bookings in the range of $4.05-$4.20 billion, and adjusted EBITDA between $90 million and $95 million. The midpoint of the gross bookings guidance fell short of the current consensus estimate, reflecting the challenging pricing environment and the impact of the loss of the Delta partnership.



Analysts weighed in on Lyft's earnings and guidance, with many expressing concerns about the company's growth trajectory. Cantor Fitzgerald analyst Deepak Mathivanan maintained a Neutral rating on the stock and cut the price target from $15 to $14, citing the deterioration in industry pricing trends and the weak bookings guidance. Piper Sandler analyst Thomas Champion maintained a Neutral rating and reduced the price target from $23 to $18, noting the weaker-than-expected bookings and the challenging pricing environment. Wedbush analyst Scott Devitt maintained a Neutral rating and slashed the price target from $18 to $16, highlighting the impact of the loss of the Delta partnership and the weak bookings guidance.

Lyft's CEO, David Risher, acknowledged the pricing pressure and competition, stating that the company is facing a "deterioration in industry pricing trends" since the latter part of the fourth quarter. He also noted that the company is working to address these challenges and maintain its competitive position in the market.

In conclusion, Lyft's stock price tumbled following the company's fourth-quarter earnings report, which fell short of investor expectations. The company's weak bookings and guidance reflect the challenging pricing environment and the impact of the loss of the Delta partnership. As Lyft works to address these challenges and maintain its competitive position, investors will be closely watching the company's progress and the broader ride-sharing market dynamics.