Wedbush Notes Underperformance As Lyft Stock Dives

Core Insights - Lyft's stock performance has weakened significantly, with shares down 16.85% to $14.01 following disappointing earnings results [5] Group 1: Financial Performance - Lyft reported fourth-quarter bookings growth of 18.6% year-over-year, reaching $5.1 billion, but this was below expectations [2] - Total rides grew 11.4%, falling short of Street estimates of 17.3% and below management's mid-to-high-teens growth outlook [2] - Revenue for the quarter was $1.6 billion, up just 2.7% year-over-year, and approximately 9% below estimates, impacted by a one-time legal, tax, and regulatory charge [2] Group 2: Analyst Reactions - Following the earnings report, Wedbush lowered its price target for Lyft from $16 to $13 and maintained an Underperform rating, citing weaker ride growth and modest guidance [3] - Concerns were raised about Lyft's long-term ability to meet its targets, with indications that Lyft may have lost U.S. mobility market share to Uber, which saw a 22% year-over-year growth in consolidated trips [3] Group 3: Future Guidance - Lyft's guidance for the first quarter indicated gross bookings growth of 16.8% to 20.1%, which is roughly in line with expectations [4] - Adjusted EBITDA is projected to be between $120 million and $140 million, below the Street's $140 million midpoint [4] - Management indicated that ride growth will lag behind bookings growth as the company shifts towards higher-priced offerings [4] Group 4: Broader Concerns - Longer-term risks highlighted include Lyft's exposure to autonomous vehicle disruption and a relatively undiversified business model [5] - There are concerns that the market may be underestimating the potential negative impact of autonomous vehicle adoption on Lyft's valuation [5]