Why Lyft (LYFT) stock is nosediving

Lyft (LYFT) CEO David Risher sees robotaxis as a major opportunity, despite a Q3 loss of $9.7M due to one-time items. Revenue rose 8% to $1.8B, missing estimates, but gross bookings climbed 17% to $5.6B. Active riders grew 10% to 31.6M. Lyft expects Q4 gross bookings of $5.74B-$5.94B, in line with estimates. The company is integrating autonomous vehicles, like Waymo, into its platform.

Raymond James reiterated a Market Perform rating on Lyft (LYFT), citing in-line gross bookings and an adjusted EBITDA beat. The company reported Q3 gross bookings of $5.6B, up 17% YoY, and revenue of $1.8B, up 8% YoY. Analysts have mixed price targets, ranging from $10 to $25, with some citing margin concerns and others noting cost discipline.

Airbnb, Cloudflare, and IREN led premarket gains, while DraftKings and Atlassian slumped. Airbnb reported Q3 earnings of $3.16 per share and $4.87B revenue, raising its 2026 revenue growth forecast. Cloudflare saw 39% revenue growth. IREN reported 66% sequential revenue growth. DraftKings missed estimates, falling over 20%.

Rosenblatt cut its price target on Lyft (LYFT) to $18 from $19, citing concerns over 2027 margin outlook. Lyft's Q3 results met bookings expectations and exceeded profitability estimates, with gross bookings up 17.5% YoY. Adjusted EBITDA margin expanded to 3.6% of bookings. Rosenblatt expects a 2027 adjusted EBITDA margin of 3.5%. Lyft shares trade at a P/E ratio of 2.46, with some analysts suggesting undervaluation.

BMO Capital reiterated a Market Perform rating on Lyft (LYFT) with a $23 price target. Lyft reported Q3 2026 gross bookings of $5.6B, up 17% YoY, and revenue of $1.8B, up 8% YoY but 5% below estimates. Adjusted EBITDA was $204M, 6% above estimates. Q4 guidance was 5% and 1% above expectations for bookings and EBITDA, respectively. Active riders grew 10% YoY to 31.6M. Analysts had mixed reactions to the earnings report.

Evercore ISI reiterated an In Line rating and $20 price target on Lyft (NASDAQ: LYFT) after its Q3 results. Lyft reported $5.62B in gross bookings, up 17% YoY, and $204M in EBITDA, 6% above estimates. Revenue was $1.82B, up 8% YoY, but slightly below expectations. Q4 guidance was in line with Street estimates. Goldman Sachs lowered its price target to $20 but maintained a Buy rating.