Lyft's Bookings Miss Estimates Amidst Pricing War with Uber
Lyft's shares plunged Wednesday, down approximately 14% in premarket trading, following the ride-hailing company's forecast of lower-than-expected first-quarter bookings.
Lyft estimates gross bookings for Q1 at $4.05-4.2 billion, well below the consensus estimate of $4.23 billion. This decline is attributed to an ongoing price war with industry rival Uber Technologies (UBER).
JPMorgan analysts have downgraded their price target for Lyft to $16, citing the increasingly competitive ride-sharing landscape. They predict Lyft's results to remain under pressure through H1 2025, exacerbated by the loss of its Delta Air Lines partnership.
Despite reporting mixed Q4 results on Tuesday, with revenue below estimates but earnings per share exceeding forecasts, Lyft's stock has gained approximately 10% over the past year.