Investors interested in Internet - Services stocks are likely familiar with Lyft (LYFT) and Shopify (SHOP). But which of these two companies is the best option for those looking for undervalued stocks?
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LYFT's Q2 earnings and revenues lag estimates despite double-digit bookings growth and a strong EBITDA margin.
Both Lyft and Uber are well-positioned for secular growth, especially as autonomous vehicle adoption accelerates and robotaxi services expand. But I see Lyft most likely to be a 10-bagger than Uber following a Lynch-style analysis. Compared to UBER, LYFT has a more focused operation, lower valuation ratios, and also more aggressive growth investment adjusted for its size and segments.
Lyft is betting on a revenue boost from deploying autonomous vehicles in the U.S. and Europe as the San Francisco-based ride-sharing company works to scale its robotaxi presence.
Lyft Inc (NASDAQ:LYFT) shares dropped 3.3% after hours and are set to fall another 1.7% at the New York open, following a quarterly revenue miss that overshadowed an improved gross bookings outlook for the coming quarter. Turnover for the second quarter reached $1.59 billion, below analyst expectations of $1.61 billion.
Lyft's post-earnings dip creates a compelling buying opportunity, as the company maintains double-digit growth and strong bookings, despite macroeconomic headwinds. The company's strategic focus on profitable growth, reduced incentives, and selective market expansion is driving record adjusted EBITDA and free cash flow. Lyft trades at a significant valuation discount to Uber, with single-digit FCF multiples rarely seen in today's market, despite stable U.S. market share.
The headline numbers for Lyft (LYFT) give insight into how the company performed in the quarter ended June 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Lyft (LYFT) came out with quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.24 per share a year ago.
Ride-hailing platform Lyft Inc. on Wednesday forecast key demand metrics that were better than Wall Street expected, but sales and rides for the second quarter came in below estimates.
Baidu and Lyft are joining forces to deploy Apollo Go robotaxis in European cities. Lyft is planning for thousands of robotaxis in Europe, starting in the UK and Germany by 2026.
Lyft, Inc.'s partnership with Baidu to deploy Apollo Go robotaxis in Europe gives Lyft a first-mover advantage and expands its growth potential beyond North America. Lyft is showing improving fundamentals and attractive valuation, but faces risks like share dilution and the need to prove it can execute on its European expansion. Baidu benefits by gaining a foothold in a highly regulated Western market without building its own infrastructure, but faces ongoing geopolitical and regulatory risks.