Prediction: Lyft Will Crush the Market in 2026. Here's Why.

Core Viewpoint - Lyft's stock is outperforming the S&P 500 with over a 40% gain year to date in 2025, contradicting the narrative of its impending demise [1][2] Company Performance - In Q2 2025, Lyft recorded nearly 235 million rides, a 14% year-over-year increase, marking its ninth consecutive quarter of double-digit growth [9] - Lyft has achieved a record of 26 million active riders, indicating strong demand and growth in its user base [9] Valuation and Investment Potential - Lyft's stock trades at 8 times its trailing free cash flow, significantly lower than Uber's 23 times, suggesting it is undervalued [10] - The potential for Lyft's stock to double exists, as the market begins to recognize its undervaluation, while ongoing business growth could further enhance its market performance [12] - Lyft repurchased $200 million of its stock in Q2, reducing its share count for the first time, which can increase the value of remaining shares [13][14] Industry Dynamics - The narrative of a future dominated by autonomous ride-sharing fleets, particularly by Tesla, is challenged by the fact that multiple manufacturers are developing autonomous vehicles, ensuring competition [7][8] - Despite predictions of Tesla's dominance in the ride-sharing market, Lyft's performance metrics continue to rise, indicating that demand aggregators like Lyft will still be necessary [8]