Lyft’s (LYFT, $69.01) makes a stellar market debut, shares rise over 23% after
Ride-hailing service provider Lyft’s shares rose as high as 23% in its market debut on Friday, as investors showcased strong demand for the company’s shares.
This highly successful debut of Lyft not only makes it the year’s biggest IPO thus far, but also sets the stage for other Silicon Valley unicorns like Pinterest Inc, Postmates Inc and Slack Technologies Inc. seeking to debut in stock market this year.
Lyft’s shares reflect investors’ zeal to explore technology. On Thursday, Lyft priced 32.5 million shares, slightly more than it was offering originally, at $72, on top of its already elevated $70-$72 per share target range, raising $2.34 billion in its initial public offering. Its stock opened at $87.24 but later cut back on gains close up 8.7% at $78.29, giving Lyft a market capitalization of around $22.2 billion.
Even though Lyft’s subscriptions have grown with more than 500 orders from institutional investors, certain concerns still need to be addressed.
Despite revenue doubling in 2018 to $2.16 billion, Lyft’s losses rose from $688 million in 2017 to $911 million last year. Profit is a metric that motivates investors to take risks in business. The same applies to Uber, which is also still a loss-making company.
It is believed that these companies’ losses come from subsidizing rides, a tactic to attract riders with discounts. Despite Lyft’s steep loses, criticism of its dual-class share structure, and some concerns over its strategy for autonomous driving and new laws aimed at increasing driver pay.
The company’s Chairman confirmed that Lyft will continue to focus on its North American growth over international expansion after the completion of its IPO.
LYFT in upward trend: 10-day moving average crossed above 50-day moving average on May 02, 2025
The 10-day moving average for LYFT crossed bullishly above the 50-day moving average on May 02, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over 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 April 21, 2025. You may want to consider a long position or call options on LYFT as a result. In of 93 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 April 17, 2025. Looking at past instances where LYFT's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
LYFT moved above its 50-day moving average on April 24, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LYFT advanced for three days, in of 282 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 155 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 May 06, 2025. 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 25 similar instances where the indicator moved out of overbought territory. In of the 25 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 11 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 .
LYFT broke above its upper Bollinger Band on April 24, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. LYFT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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 significantly overvalued 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 (14.205) is normal, around the industry mean (30.917). P/E Ratio (0.000) is within average values for comparable stocks, (160.020). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.714). Dividend Yield (0.000) settles around the average of (0.029) among similar stocks. P/S Ratio (1.684) is also within normal values, averaging (59.831).
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 87, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of online social rideshare community platform
Industry PackagedSoftware