Core Viewpoint - The article emphasizes a fundamentals-first approach to investment analysis, particularly focusing on identifying mispriced assets that the market has overlooked [1]. Group 1: Investment Philosophy - The company has a long-term investment perspective, having managed investments since 1999 across multiple market cycles [1]. - The analysis conducted is intended for personal use, rather than merely providing casual buy or sell recommendations [1]. - While acknowledging the importance of market sentiment and technical factors, the primary focus remains on fundamental analysis [1].

Core Viewpoint - The article emphasizes a fundamentals-first approach to investment analysis, particularly focusing on uncovering mispriced assets that the market has overlooked, despite the influence of sentiment and technical factors in today's algorithm-driven environment [1]. Group 1: Investment Philosophy - The company has a long-term investment perspective, having managed investments since 1999 and gained insights across multiple market cycles [1]. - The analyst is pursuing ongoing CFA certification, indicating a commitment to professional development and rigorous analysis [1]. - The analysis conducted is intended for personal use, suggesting a thorough and self-reliant approach to investment decisions rather than casual recommendations [1]. Group 2: Market Environment - The current investment environment is characterized by algorithm-driven strategies that often prioritize sentiment and technical indicators over fundamental analysis [1].

Lyft issued an earnings forecast that suggested its global expansion and new product offerings are not performing as quickly and as well as anticipated. Lyft CEO David Risher discusses the company’s growth, self-driving partnerships and the state of the company’s Citi Bikes, frozen in New York City snow. He joins Caroline Hyde and Ed Ludlow on “Bloomberg Tech.” -------- Like this video? Subscribe to Bloomberg Technology on YouTube: https://www.youtube.com/channel/UCrM7B7SL_g1edFOnmj-SDKg Watch the latest fu ...

Lyft Crashes 16% After Accounting Magic Masks Weak Growth - Moby BREAKING NEWS Lyft is getting smoked. The ride-share company posted a weak quarter and the stock is down 16.5% as of mid-day Wednesday. What makes the selloff interesting is that, on the surface, the numbers didn’t look bad. Gross bookings hit $5.1 billion, up from $4.3 billion in Q4 2024, a 19% year-over-year jump. Revenue came in at $1.59 billion versus $1.55 billion a year ago. Active riders climbed to 51.3 million from 43.5 million, a ...

So, the consumer is really strong and I just love watching this because what happens is, you know, we're part of people's lives millions of times every single day. Four million times a day, people open the Lyft app and they generally like what they see, right. Which is why we had record bookings, why we and accelerated bookings actually, uh we have record profits, uh generating over a billion dollars in cash and that's a result of our customer obsessed strategy which just keeps working and growing the compa ...

Core Viewpoint - Lyft's stock price has significantly dropped by 14.1% following a disappointing Q4 earnings report, primarily due to lower-than-expected sales figures, despite reporting high earnings per share that are not sustainable in future quarters [1][3]. Financial Performance - Lyft's Q4 2025 sales were expected to be $1.75 billion but fell short at below $1.6 billion, while earnings per share were reported at $6.81, influenced by a one-time tax benefit [1][3]. - Gross bookings increased by 19% year-over-year, but revenue only rose by 3%, impacted by legal and regulatory issues [4]. - For the full year, gross bookings reached $18.5 billion (up 15%), revenue was $6.3 billion (up 9%), and net income was $2.8 billion, largely due to the same tax benefit affecting Q4 [4]. Cash Flow and Valuation - Lyft generated $1.1 billion in free cash flow for 2025, reflecting a 47% year-over-year growth, which is outpacing sales and bookings growth [6]. - The stock is currently valued at a 6x price-to-free cash flow ratio, with growth projected to remain in the double digits, suggesting it may be a buying opportunity [7].

Economic Overview - The US stock market experienced a significant downturn, with the Dow Jones Industrial Average falling below 50,000, closing at 49,999.24, down 188.90 points (0.38%), while the Nasdaq dropped 192.48 points (0.83%) to 22,909.99 [3][13] - Despite the addition of 130,000 jobs in January 2026, surpassing forecasts of 75,000, the unemployment rate decreased to 4.3%, lower than the expected 4.4% [3][13] Labor Market Insights - The Bureau of Labor Statistics revised the total jobs added in 2025 down to 181,000 from a previously reported 584,000, indicating a significant reduction in average monthly job growth from 50,000 to 15,000 [2][9] - The 2025 labor market was characterized as a "hiring recession" across most sectors, with healthcare being the only exception, leading to a "K-shaped" market where only a few sectors thrive while the broader economy struggles [4][10] Market Reactions - The immediate market reaction to the stronger-than-expected hiring data was a spike in bond yields, which negatively impacted stock valuations, particularly for the S&P 500 and Nasdaq, heavily weighted towards companies with future cash flows [3][10] - Individual stocks faced dramatic declines, with Unity Software (U) plummeting 34.16% to $19.13 due to concerns over competition from Alphabet's generative AI tool, "Project Genie 3" [6][13] - Robinhood Markets (HOOD) saw a 12.78% drop to $74.66, reflecting a broader sell-off in retail-centric platforms as the Nasdaq Crypto Index fell 3.72%, dragging Bitcoin down to $66,227 [7][13] Commodities and Investment Trends - In contrast to equities, the commodities market showed resilience, with gold rising 1.12% to $5,087.10 and silver increasing by 3.91% to $83.53, as investors sought safe havens amid economic instability [11][14] - The current economic environment is marked by erratic trade policies and a transition in Federal Reserve leadership, leading to a "wait-and-see" approach among investors until the next Consumer Price Index (CPI) report is released [12][14]

Core Insights - Lyft's CEO David Risher emphasized strong consumer demand and record profits, generating over $1 billion in cash, attributing this success to a customer-focused strategy [1] - Despite the positive outlook, Lyft's shares dropped 15% due to disappointing ridership numbers [1] Financial Performance - Lyft reported 29.2 million active riders for the quarter, below the expected 29.5 million, and rides totaled 243.5 million, missing estimates of 256.6 million [2] - The company's fourth-quarter revenue was adjusted to $1.76 billion, aligning with expectations, while adjusted earnings per share were 16 cents, surpassing the expected 12 cents [4] Future Growth Drivers - Risher highlighted the introduction of teen accounts and the acquisition of European taxi app FreeNow as key growth initiatives [2] - Lyft's first-quarter guidance is soft, with expected bookings between $4.86 billion and $5 billion, compared to a FactSet estimate of $4.93 billion, and projected adjusted EBITDA of $120 million to $140 million, against a consensus of $139.8 million [3] Strategic Partnerships and Innovations - Lyft is positioned well with partnerships with Waymo and Baidu, planning to introduce self-driving cars in locations like Nashville by 2026 [4] - The company noted a 13% to 15% volume growth during the Super Bowl, with improved pickup times and lower surge pricing compared to competitors [5]

Core Viewpoint - Investors are currently seeking reasons to trigger a selloff despite favorable earnings reports in the Q4 earnings season, indicating a demand for perfection in performance [1]. Group 1: Market Sentiment - The market is characterized by a cautious sentiment where investors are looking for any signs of macroeconomic decline or disruption from AI [1]. - Companies are reporting strong earnings, showing resilience against potential economic downturns [1]. Group 2: Analyst Background - Gary Alexander has extensive experience in covering technology companies and has worked in Silicon Valley, providing insights into current industry themes [1]. - He has been a contributor to Seeking Alpha since 2017 and has been featured in various web publications, indicating a recognized authority in the field [1].

Group 1 - Shopify's stock increased by 10.3% after reporting Q4 revenue that exceeded expectations [1] - Lyft's stock fell by 16.1% due to Q4 revenue falling short of expectations and weak guidance for the first quarter [1] - Mattel's stock dropped by 29.4% as the company projected annual profits below expectations [1] Group 2 - Moderna's stock declined by 9.1% after the FDA rejected its application for the review of an experimental flu vaccine [1] - Kraft Heinz's stock fell by 5.8% as the company announced a pause on its split plan [1] - Kingsoft Cloud's stock rose by 9.7% as Goldman Sachs anticipates benefits from Xiaomi's continued investment in AI [1]