Future Fund LLC's managing partner, Gary Black, thinks ride-hailing service Lyft Inc.'s (NASDAQ:LYFT) performance, as well as increased adoption of AVs, warrants more investment in the company.
What Happened: Following Lyft's Earnings Call, Black took to the social media platform X to share his thoughts on the company's results for Q1 2025 on Thursday.
$LYFT +8% AH after delivering higher than expected EBITDA, FCF, and turning a surprise earnings profit (+$.01 vs -$.02 exp loss). 1Q Gross bookings and # Rides beat. 2Q gross bookings and EBITDA were in line. LYFT announced a larger than expected share buyback ($750M, $500M in…
— Gary Black (@garyblack00) May 8, 2025
"$LYFT +8% AH after delivering higher than expected EBITDA, FCF, and turning a surprise earnings profit (+$.01 vs -$.02 exp loss)," Black said. The company beat Wall Street expectations on EPS, but missed out on quarterly revenue estimates as Lyft announced $1.45 billion in revenue.
"LYFT trades at just 14.0x FY'25 Adj EPS and 10.4x FY'26 est eps while growing bookings, revs, and trips at 12% and EBITDA growth of 25%," Black said in the post.
"Both $UBER and $LYFT seem worthy of increased investment given the high probability of cost per mile reductions as autonomous vehicles become more commonplace," he shared.
Why It Matters: The news comes in as Lyft announced surprise results during its earnings call as the company turned in a 1-cent EPS, which beat analyst expectations.
The company's board also authorized an increase to its stock repurchase program to $750 million, of which Lyft intends to utilize $500 million within the next 12 months.
Lyft also recently acquired European ride-sharing service Freenow in a cash deal that's worth over $197 million. The deal would allow Lyft to operate in over 9 European countries.
Elsewhere, rival Uber Technologies Inc. (NYSE:UBER) is increasing its presence in the autonomous driving sector as the company signed deals with May Mobility as well as Volkswagen Group (OTC:VWAGY) to operate their vehicles on its platform.
LYFT has poor Momentum and Value scores, but scores well on the Growth metric. For more such insights, sign up for Benzinga Edge today!
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