Lyft Rips Higher on Waymo Deal, But is LYFT Stock a Buy Right Now?

Core Insights - Lyft has announced a partnership with Waymo to launch autonomous ride-hailing services in Nashville by 2026, which is expected to enhance fleet management and utilization [1] - Following the news, Lyft's stock surged over 11%, indicating strong market enthusiasm, although caution is advised due to overbought conditions [2] Company Performance - Lyft has achieved nine consecutive quarters of double-digit growth in rides, reaching a record 235 million rides in Q2 2025, with 26 million active riders [4] - The company's Q2 revenue grew by 10.6% year-over-year to $1.59 billion, with active riders increasing by 10.3% annually, reflecting sustained user expansion [4] Financial Health - Analysts project non-GAAP earnings of $1.18 per share and revenue of $6.57 billion for the fiscal year, representing growth of 24.21% and 13.52% respectively [5] - Lyft's management has demonstrated a commitment to shareholder value through a $200 million stock repurchase in Q2 and plans for approximately $500 million in buybacks over the next year [5] - The company's free cash flow margins have expanded by 23.7 percentage points over recent years, indicating improving profitability [5] Valuation and Future Outlook - Lyft is trading at 8 times free cash flow, significantly lower than competitor Uber's 23x multiple, suggesting an attractive valuation [6] - The combination of regulatory tailwinds, strategic partnerships, and solid financial performance indicates continued growth potential in the mobility sector [6]