Prediction: Lyft Stock Could Double in the Next 3 Years

Core Viewpoint - Lyft has faced significant challenges in the public markets, with its share prices down 77% since its IPO in 2019, while Uber has seen stock growth due to effective cost management and steady growth [1][2]. Financial Performance - Lyft's revenue growth has outpaced Uber's over the past year, achieving 16 consecutive quarters of double-digit percentage gross bookings growth [2]. - The company reported its first GAAP profit last year and an adjusted EBITDA of $106.5 million in Q1 2025, nearly double from the previous year [3]. - Lyft's free cash flow over the last four quarters reached $919.9 million, with a market cap of less than $7 billion, resulting in a stock trading at less than 8 times trailing free cash flow [3]. Expansion Strategy - Lyft acquired FreeNow, a European ride-share platform, for $200 million, effectively doubling its addressable market across nine countries and over 150 cities [6][7]. - This acquisition is expected to increase Lyft's annualized gross bookings by approximately $1 billion, representing less than 10% of its current gross bookings [7]. Innovation and Service Improvement - Lyft has introduced new features such as Lyft Silver, aimed at older riders, and Price Lock, which allows customers to secure prices for regular commutes [9][10]. - The company also launched an AI earnings assistant for drivers to help maximize their earnings [10]. Future Outlook - Lyft's growth opportunities from the FreeNow acquisition and its innovative features position it to potentially double its stock price in the next three years if it maintains its growth rate and improves profitability [11][12].