Lyft Shares Surge 20% on $750M Buyback, Profitability; Goldman Sachs Upgrades

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Updated May 9, 2025, 02:50 PM

Lyft Inc. shares surged after the company announced an increase in its stock buyback program to $750 million and reported a swing to profit, driven by a rise in ridership. The stock rose as much as 20% following the news, reflecting investor confidence in the company's financial health and future demand, bolstered by a strong Q2 outlook. Goldman Sachs upgraded Lyft's stock to 'Buy' from 'Neutral' and raised its price target to $20 from $19, citing strong ride growth and earnings beats. The upgrade further fueled the positive market sentiment towards Lyft, which also reported its 16th straight period of gross bookings growth. Lyft's CEO, David Risher, expressed optimism about the health of the U.S. consumer, stating there are no signs of worry despite broader economic concerns. This sentiment aligns with the company's strong performance in the first quarter, where gross bookings grew 13% year-over-year to $4.16 billion, rides increased by 16% to 218.4 million, and the company achieved a net income of $2.57 million. Lyft plans to use $500 million of the buyback over the next year.

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Sources

cnbc.com omny.fm ooc.bz marketwatch.com

CNBC

@CNBC

Lyft shares pop 20% after buyback; CEO says there are no signs of worry in the consumer https://t.co/PDcFOEK4oH

Ophir Gottlieb

@OphirGottlieb

$LYFT CEO says there are no signs of worry in the consumer - @cnbc

Bloomberg

@business

Lyft Rises on Strong Bookings, Expanded Buybacks. Listen for five-minute episodes on today's winners and losers in the stock market. https://t.co/KOGSqTZAvA