Lyft Shares Drop Amid Mixed Q4 Results, Future Concerns

Lyft's stock faced significant volatility, dropping around 10% after the company reported mixed Q4 2024 earnings results. Although revenue reached $1.55 billion, slightly below the $1.56 billion consensus estimate, earnings per share of $0.15 fell short of expectations of $0.21. The company announced a $500 million share repurchase program, but uncertainties regarding its autonomous vehicle strategy and intense competition from rivals like Uber and Waymo have raised concerns among investors. For the first quarter of 2025, Lyft expects adjusted EBITDA between $90 million to $95 million, which is below analyst forecasts. Despite a year-over-year revenue growth of 26.6%, analysts have adjusted their price targets amid concerns over future growth rates. Lyft's CEO emphasized that competition remains a significant challenge in the ride-hailing market.