Lyft Tumbles on Disappointing Outlook; JPM Lowers Price Target

Core Insights - Lyft's shares fell approximately 14% in premarket trading due to lower-than-expected first-quarter bookings projections amid ongoing price competition with Uber [2][6] - The company anticipates first-quarter gross bookings between $4.05 billion and $4.2 billion, which is below the consensus estimate of $4.23 billion [3][6] - JPMorgan has reduced Lyft's price target from $19 to $16, citing an increasingly competitive rideshare market and potential pressure on results through the first half of 2025 [4][5] Financial Performance - Lyft reported fourth-quarter revenue of $1.55 billion, which was below analyst estimates, while adjusted earnings per share (EPS) of 27 cents exceeded forecasts [5] - The loss of the partnership with Delta Air Lines is expected to impact Lyft's growth in gross bookings, raising concerns about achieving mid-teen annual growth through 2027 [5] Market Context - The competitive landscape in the rideshare industry is intensifying, particularly with ongoing price wars between Lyft and Uber [2][5] - Uber has also reported a current-quarter gross bookings outlook that fell short of analysts' expectations, indicating broader challenges in the industry [3]