The ride-hailing firm reported quarterly revenue of $1.59 billion, while analysts expected it to post $1.61 billion.
Lyft (LYFT) stock fell 5.1% in premarket trading on Thursday after its second-quarter revenue fell short of Wall Street’s estimates.
The ride-hailing firm reported quarterly revenue of $1.59 billion, while analysts expected it to post $1.61 billion. Earlier on Wednesday, its bigger rival, Uber, topped profit estimates and unveiled a higher-than-expected forecast.
Unlike Uber, which has a significantly larger global presence, Lyft’s revenue is primarily generated in the U.S., where consumer sentiment has deteriorated due to tariff-driven economic uncertainty. Its revenue growth of 10.6% was slower than Uber’s 18.8% revenue growth at its rideshare unit.
However, Lyft’s earnings of $0.10 per share comfortably topped analysts’ expectations of $0.04 per share.
Retail sentiment on Stocktwits about Lyft was in the ‘extremely bullish’ territory during premarket trading on Thursday, while retail chatter was ‘extremely high.’
According to FactSet data, cited by Barron’s, Lyft’s total rides during the quarter stood at 234.8 million compared with the anticipated 235.7 million. Its gross bookings of $4.49 billion came in marginally short of Wall Street’s estimated $4.50 billion.
Lyft has often been criticized for being slow to adopt autonomous vehicles in its fleet. While rival Uber has already launched robotaxis on its platform in the U.S. through a partnership with Alphabet’s Waymo, Lyft is planning to offer rides in Atlanta later this year through a collaboration with May Mobility.
The company projected third-quarter gross bookings between $4.65 billion and $4.80 billion.
Earlier this week, the company also launched a partnership with China’s Baidu to launch robotaxis in Europe. Lyft initially intends to launch them in Germany and the UK in 2026, pending regulatory approval.
“Most people’s first AV experience will be through rideshare. That’s valuable to us, but it’s also valuable to AV companies,” CEO David Risher said in a call with analysts.
One user said that the stock was really undervalued. “It should be around minimum $25-40 per share,” the trader noted.
“Accumulating more shares than I want, but at this rate of FCF [Free cash flow] it’s one of the biggest no-brainer buys in the entire stock market,” another user said.
Lyft stock has risen nearly 7% this year. Separately, it also launched a tie-up with United Airlines on Wednesday.
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