Lyft, Inc. (Lyft): Bull Case Theory
We met A strong paper Lyft, Inc. by Stefan Waldhauser. This article summarizes the Bulls paper on Lyft. Lyft, Inc. The shares were trading at $14.53 as of June 20th.th. According to Yahoo Finance, Lyft’s subsequent P/E ratios were 96.93 and 19.92, respectively.
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Lyft’s stock has long been overlooked after a 80% decline since its 2019 IPO, but now emerges as a compelling turnaround story driven by strong executions under new leadership. Following years of losses under the founding team, Lyft appointed David Risher as CEO in April 2023. Since then, the company has undergone a strategic reset focusing on core ride hailing operations, sudden cost reductions and improved profitability.
With over 5.5 million active riders and 500,000 drivers, Lyft promotes more than 2 million vehicles every day, returning to growth, with total bookings reaching $16 billion in 2024 and free cash flow already reaching double digits. The adjusted EBITDA margin is expected to rise steadily, reaching 4% of total bookings by 2027, potentially offering $1.1-13.5 billion in annual free cash flow. Despite this trajectory, Lyft trades with free cash flow of less than 8x and revenue multiples of 1x, deeply underestimating its platform.
Market hesitations stem mainly from the fear of confusion caused by Robotaxis. However, Lyft is actively affiliated with AV companies such as Mobileye and May Mobility, and could serve as an important distribution platform for AV providers rather than replacing them with AV providers. Especially given Lyft’s unparalleled North American scale and sticky user base, potential strategic buyers of Amazon, Waymo, Tesla or legacy automakers can accelerate this shift.
If Lyft meets its medium-term target, it could double the shares without an acquisition. With improved fundamentals, durable free cash flow and strategic options, Lyft offers an attractive entry point for growth investors seeking asymmetric benefits on misunderstood platforms.
Previously, I covered a A strong paper Lyft, Inc. by Stefan Waldhauser in April 2025. It highlighted the company’s international expansion through its acquisition of FreeNow and the possibility of unlocking a broader addressable market. Our stock price has been valued approximately 30% since our compensation. This is because strategic trading has boosted investors’ trust despite limited short-term impacts. The paper still exists as the global long-term value remains intact. Stefan Waldhauser shares the same view, but highlights Lyft’s domestic turnaround and accelerated free cash flow profile.