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Lyft Reports More Riders: Will Uber Benefit Too?

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On Wednesday, Lyft (NASDAQ:LYFT) reported its first-quarter earnings during after-market hours. The quarter ended on March 31. Notably, the stock rose about 15% in after-hours trading on the same day. Lyft stock rose after the ride-sharing company reported growth in active riders despite travel restrictions amid COVID-19. During the first quarter, Lyft reported 21.2 million active riders—a 3% rise compared to 20.5 million in the first quarter of 2019. The revenue per active rider increased 19% YoY (year-over-year) to $45.06 in the first quarter from $37.86 in the first quarter of 2019.

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Lyft’s revenues rose 23.2% YoY to $955.71 million. The analysts surveyed by Reuters expected sales of $884.7 million. The company reported an EPS of -$1.31 in the first quarter compared to -$48.53 in the first quarter of 2019. However, Wall Street analysts expected the company to post an EPS of -$0.63 in the first quarter.

According to a CNBC report, Lyft CEO Logan Green said, “Covid-19 had a profound impact on Lyft’s customers and core business; he revealed that for the month of April, rides were down around 75% year-over-year, and were still down 70% last week.”

What are analysts saying about Lyft stock?

Analysts are largely bullish on Lyft stock. Among the 39 analysts, 26 recommend a “buy,” while 13 recommend a “hold.” Analysts’ average target price for the stock is $45.73, which implies a healthy 75% upside based on its last closing price.

Many analysts changed their target price for Lyft stock after its first-quarter earnings results.

  • Piper Sandler downgraded the stock from “overweight” to “neutral” and decreased its target price from $63 to $31.
  • Jefferies decreased its target price from $60 to $50.
  • D.A. Davidson increased its target price from $27 to $35.
  • RBC increased its target price from $47 to $51.
  • Susquehanna decreased its target price from $72 to $45.
  • Wedbush increased its target price from $30 to $36.
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Uber’s earnings are coming!

Today, Uber (NYSE:UBER) will likely report its first-quarter earnings results after the market close. The company will likely report $3.5 billion in revenues and an EPS of -$0.88 during the quarter. However, Wall Street analysts are positive with an average “buy” rating and a 36% potential upside over Wednesday’s closing price.

Stock returns

Lyft stock fell 2.1% on Wednesday and ended the day at $26.12. At this closing price, Lyft’s market cap is $7.8 billion. The stock is trading 61.8% below its 52-week high of $68.33 and 79.4% above its 52-week low of $14.56.

Based on the closing price on Wednesday, Lyft stock was trading 13.1% below its 20-day moving average of $30.06. The stock is also trading 10.1% below its 50-day moving average of $29.06 and 31% below its 100-day moving average of $37.85.

Lyft’s 14-day relative strength index score is 41, which indicates that the stock is near oversold levels. The stock’s upper, middle, and lower Bollinger Band levels are $34.60, $30.06, and $25.52, respectively. On Wednesday, the stock closed near its lower Bollinger Band level, which indicates that it’s oversold.

Lyft stock rose 16.4% in pre-market today at 7:17 AM ET. Uber stock was riding on Lyft’s earnings wave with 7.3% gains at the same time in pre-market today. The S&P 500 futures rose 1.3%, while the Dow futures rose 1.2%.

Read Amazon and Lyft Join Forces to Meet COVID-19 Demands to learn more.

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