NHL signs licensing deals with prediction-market startups Kalshi and Polymarket - WSJ
On Monday, Wolfe Research reiterated a Peerperform rating for Lyft (NASDAQ:LYFT) stock, maintaining a positive outlook as the company approaches its fourth-quarter earnings report set to be released on February 11, after the market closes. Trading at $14.17, with a market capitalization of $5.88 billion, InvestingPro analysis suggests the stock is currently undervalued, presenting a potential opportunity for investors ahead of earnings. Lyft has consistently exceeded its own Bookings guidance for three of the past four quarters and has surpassed its EBITDA guidance for the last twelve consecutive quarters. Despite this performance, Lyft shares have lagged behind the S&P 500 by 20.5 points and the Nasdaq by 21 points since its last earnings report on November 6th.
Wolfe Research anticipates that Lyft will offer guidance or commentary on its expectations for the fiscal year 2025 during the upcoming report. The firm also predicts that Lyft’s recent partnership with DoorDash (NASDAQ:DASH) and the introduction of a price lock feature will positively influence the first quarter results, although this may be slightly offset by the adverse effects of the Los Angeles fires. Furthermore, the loss of Lyft’s partnership with Delta is not expected to significantly impact the company’s profit and loss statement.
For the fourth quarter, Wolfe Research’s estimates suggest that Lyft will see a 16.9% year-over-year growth in Bookings, which is higher than the Street’s expectation of a 15.7% increase. The firm also forecasts an EBITDA margin of 2.4%, aligning with Street projections and indicating a year-over-year margin expansion of 61 basis points. These projections come as Lyft prepares to disclose its financial performance, with investors and analysts closely watching for the company’s ability to maintain its growth trajectory and manage external challenges. According to InvestingPro data, analysts are optimistic about Lyft’s prospects, expecting both sales growth and profitability in the current year.
In other recent news, Lyft has partnered with AI firm Anthropic to enhance the ridesharing experience for its community. The collaboration aims to develop customer-centric AI products and features, with the initial phase already showing promising results in customer service resolution. Lyft’s partnership with Anthropic will also provide early access to research testing of new AI offerings and training for Lyft’s engineers.
Simultaneously, Uber (NYSE:UBER) and Lyft face challenges as Tesla (NASDAQ:TSLA) and Waymo make strides in the autonomous vehicle industry. Tesla’s CEO, Elon Musk, has announced plans for the expansion of robotaxi services, while Waymo has revealed plans to extend its testing operations to 10 new cities by 2025. These developments have stirred the market, impacting the competitive landscape in the ride-hailing industry.
Moreover, BofA Securities has adjusted its outlook on Lyft shares, reducing the price target to $19 while retaining a Buy rating. This adjustment follows Waymo’s progression in its autonomous vehicle program. However, BofA Securities suggests that the impact on Lyft might not be immediate, as Waymo’s autonomous freeway rides are still in the testing phase.
Lastly, Lyft faces a competitive blow as Delta Air Lines (NYSE:DAL) ends its partnership with the company in favor of Uber. This development could affect Lyft’s growth strategy and its ability to meet earning estimates. Despite these challenges, Lyft continues to focus on enhancing its services and maintaining its position in the rideshare market.
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