Why Lyft Stock Dropped Today

Core Insights - Lyft's stock experienced a significant drop of over 16% following the release of its fourth-quarter results, although the decline moderated to 3.4% later in the session due to concerns about competitive pressures and management's guidance for the upcoming quarter [1] Group 1: Financial Performance - Lyft reported record gross bookings of $4.3 billion for Q4, which is a 15$4.28 billion to $4.35 billion [2] - The company ended Q4 with 24.7 million active riders, an increase from 24.4 million in the previous quarter, indicating a rise in both the number of riders and the frequency of rides [3] Group 2: Future Outlook - For Q1 2025, Lyft anticipates bookings growth of only 10$766 million in 2024, resulting in a valuation of just 7 times its free cash flow, which is considered very cheap for a company still experiencing double-digit growth [5] - The company has initiated its first stock buyback program with an authorization of $500 million, representing nearly 9% of its outstanding shares, which may enhance shareholder value [6]