Lyft (LYFT, Financial) reported Q1 gross bookings of $4.16 billion, up 13% year-over-year and slightly above the $4.15 billion consensus, sending shares up over 22% in Friday afternoon trading.
The ride-hailing firm also supercharged its capital return program, increasing its share buyback authorization by 50% to $750 million from $500 million, underscoring confidence in cash flow generation.
Goldman Sachs analyst Eric Sheridan lifted his rating to Buy from Neutral and nudged his price target to $20 (from $19), arguing that Lyft's earnings power over the next two to three years is “dislocated” from current valuation and highlighting potential gains from autonomous-vehicle partnerships and fleet-owner deals. Meanwhile, Engine Capital—Lyft's prominent activist investor—pulled its board slate and shelved calls for strategic alternatives after the buyback announcement, removing a layer of governance uncertainty.
Why It Matters: The convergence of modest booking beats, a more aggressive buyback and activist retreat signals renewed investor confidence in Lyft's path to profitability.
Investors will look to Q2 guidance and updates on autonomous-vehicle tie-ups when Lyft reports next in late July.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.