Lyft, Inc. (LYFT) shares plummeted 5.25% during intraday trading on Thursday, reflecting significant negative sentiment towards the ride-sharing company.
The sharp decline follows a series of analyst price target reductions and reports highlighting growing competitive challenges. Mizuho Securities cut its price target on Lyft to $16 from $27, while Susquehanna lowered its target to $15 from $24. RBC Capital Markets also reduced its target to $22 from $27, noting Lyft's fourth-quarter results were "very challenging" as competition ramped up and dented ride volume.
Analysis indicates Lyft's U.S. ride-sharing growth rate halved to just 7% in 2025 because the company raised prices more than its main competitor, Uber. This has led to Uber taking significant market share from Lyft, forcing Lyft to focus on higher-value rides and resulting in lower-than-expected ride volume overall. Several analysts have also expressed skepticism about Lyft's ability to hit its 2027 targets and questioned its long-term competitive positioning in the autonomous vehicle space.
Comments