LYFT Should I Buy
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Lyft Inc (LYFT) is not a strong buy for a beginner investor with a long-term strategy at this time. The stock is currently in a bearish trend, with weak technical indicators, declining analyst price targets, and insider selling activity. While the company has shown significant YoY growth in net income and EPS, its revenue growth is modest, and gross margins have declined. Additionally, the competitive environment and recent earnings miss further dampen the stock's near-term prospects. Given the lack of strong positive catalysts and the absence of Intellectia Proprietary Trading Signals, holding off on investing in LYFT is recommended for now.
The technical indicators for LYFT are bearish. The MACD is negatively expanding, RSI indicates the stock is oversold at 15.709, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level (S1: 13.717) but remains below the pivot point of 15.535, signaling continued downward pressure.
The company announced a $1 billion share buyback program, which could provide some support to the stock price. Additionally, Lyft reported double-digit revenue growth and a significant YoY increase in net income and EPS.
Lyft's Q4 revenue missed expectations, leading to a 16.97% stock price drop. Analysts have broadly lowered price targets, citing competitive challenges and concerns over growth sustainability. Insider selling has increased significantly (13873.72% over the last month), and hedge funds remain neutral. The stock faces competitive pressure from Uber, and its gross margin has declined YoY.
In 2025/Q4, Lyft's revenue increased by 2.74% YoY to $1.59 billion. Net income surged by 4363.00% YoY to $2.76 billion, and EPS grew by 4700.00% YoY to 6.72. However, gross margin dropped by -14.73% YoY to 31.25, indicating potential cost pressures.
Analyst sentiment is mixed to negative. Multiple firms have lowered their price targets, with ratings ranging from Buy to Underperform. Analysts highlight competitive risks, slower growth, and near-term KPI volatility as concerns. The average price target is now significantly lower than previous estimates, reflecting reduced confidence in the stock's performance.
