Lyft (LYFT, $10.31) shares undergo the worst plunge ever, on outlook and rating downgrades
Lyft shares ended Friday trading at $10.31, slumping -36.4% -- the sharpest percent decline ever. At least eight analysts downgraded the ride-hailing company's stock following its earnings report (according to FactSet data).
While Lyft’s Q4 adjusted earnings of $126.7 million beat Street forecasts, it disappointed on guidance. According to the company’s statement, it likely won't achieve its earlier goals of $1 billion in adjusted earnings and $700 million in free-cash flow by 2024.
Wedbush analyst Daniel Ives slashed his rating on Lyft shares to neutral from outperform and cut his price target to $13 from $17. “In 22 years on the Street as a tech analyst we have listened to 1,000s of conference calls with many highs and lows”, Ives wrote. “Last night’s Lyft call was a Top 3 worst call we have ever heard as in our opinion as management is trying to play darts blindfolded with the expense structure going forward and gave an Ebitda outlook which was a debacle for the ages.”
Ives also mentioned that Lyft’s business model faces an “Everest-like uphill climb” to show growth with profitability, and that it is in a “stark contrast to big brother Uber which is moving in the opposite direction of balanced fundamentals.”
JPMorgan’s Doug Anmuth lowered his rating to neutral from outperform, while almost halving his target price to $15 (from $29). Anmuth mentioned that while the U.S. ride-share market was recovering from the pandemic, “Lyft is not.” He also noted that increasing driver supply meant less opportunity for surge pricing, and therefore headwind to revenue growth.
D.A. Davidson’s Tom White lowered his rating on Lyft’s stock to neutral from buy and cut his price target to $12.50 from $19, citing his growing concerns about the company’s ability to “regain/rebuild its prior category position (or how much it might cost to do so).”
Lyft shares ended Friday trading at $10.31, slumping -36.4% -- the sharpest percent decline ever. At least eight analysts downgraded the ride-hailing stock following its earnings report (according to FactSet data).
While Lyft’s Q4 adjusted earnings of $126.7 million beat Street forecasts, it disappointed on guidance. According to the company’s statement, it likely won't achieve its earlier goals of $1 billion in adjusted earnings and $700 million in free-cash flow by 2024.
Wedbush analyst Daniel Ives slashed his rating on Lyft shares to neutral from outperform and cut his price target to $13 from $17. “In 22 years on the Street as a tech analyst we have listened to 1,000s of conference calls with many highs and lows”, Ives wrote. “Last night’s Lyft call was a Top 3 worst call we have ever heard as in our opinion as management is trying to play darts blindfolded with the expense structure going forward and gave an Ebitda outlook which was a debacle for the ages.”
Ives also mentioned that Lyft’s business model faces an “Everest-like uphill climb” to show growth with profitability, and that it is in a “stark contrast to big brother Uber which is moving in the opposite direction of balanced fundamentals.”
JPMorgan’s Doug Anmuth lowered his rating to neutral from outperform, while almost halving his target price to $15 (from $29). Anmuth mentioned that while the U.S. ride-share market was recovering from the pandemic, “Lyft is not.” He also noted that increasing driver supply meant less opportunity for surge pricing, and therefore headwind to revenue growth.
D.A. Davidson’s Tom White lowered his rating on Lyft’s stock to neutral from buy and cut his price target to $12.50 from $19, citing his growing concerns about the company’s ability to “regain/rebuild its prior category position (or how much it might cost to do so).”
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
LYFT in upward trend: price rose above 50-day moving average on July 27, 2026
LYFT moved above its 50-day moving average on July 27, 2026 date and that indicates a change from a downward trend to an upward trend. In of 44 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on July 31, 2026. You may want to consider a long position or call options on LYFT as a result. In of 95 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for LYFT just turned positive on July 31, 2026. Looking at past instances where LYFT's MACD turned positive, the stock continued to rise in of 41 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LYFT advanced for three days, in of 275 cases, the price rose further within the following month. The odds of a continued upward trend are .
LYFT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 116 cases where LYFT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for LYFT moved out of overbought territory on August 12, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 26 similar instances where the indicator moved out of overbought territory. In of the 26 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LYFT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.211) is normal, around the industry mean (28.672). P/E Ratio (2.571) is within average values for comparable stocks, (79.190). Projected Growth (PEG Ratio) (0.148) is also within normal values, averaging (1.753). Dividend Yield (0.000) settles around the average of (0.046) among similar stocks. P/S Ratio (1.050) is also within normal values, averaging (70.832).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. LYFT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LYFT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
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General Information
a provider of online social rideshare community platform
Industry PackagedSoftware
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