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Is LYFT a good stock to buy? We came across a bullish thesis on Lyft, Inc. on Valueinvestorsclub.com by crestone. In this article, we will summarize the bulls’ thesis on LYFT. Lyft, Inc.'s share was trading at $14.42 as of May 1st. LYFT’s trailing and forward P/E were 2.12 and 11.59 respectively according to Yahoo Finance.

Lyft, Inc. operates multimodal transportation networks that offer access to various transportation options through platform and mobile based applications in the United States and internationally. LYFT is presented as a compelling long opportunity as the market continues to misprice the company’s improved fundamentals and long-term earnings power. The company trades at just 9.2x forward earnings despite expected earnings growth of 21%, 24%, and 12% over the next three years, alongside a successful operational turnaround under CEO David Risher.

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Since his appointment, Lyft has regained market share in North America, stabilised competitive positioning against Uber, and significantly improved profitability, moving from losses in 2023 to over $1 billion in free cash flow. Active riders and gross bookings have continued to compound at strong double-digit rates while EBITDA margins on gross bookings have expanded meaningfully. Despite these improvements, the stock remains down sharply from recent highs and reflects deep scepticism around autonomous vehicle disruption, execution risk, and Uber’s competitive dominance.

The investment thesis argues that autonomous vehicles will expand, not shrink, the ride-hailing market, with a hybrid human–AV model increasing total addressable demand rather than replacing drivers entirely. Lyft is positioning itself as a key marketplace and demand aggregator through partnerships with Waymo, May Mobility, and Baidu, supporting long-term participation in autonomy-driven growth.

Meanwhile, concerns about execution appear overstated as the company is ahead of internal efficiency targets and expanding high-margin premium rides and advertising. Valuation remains highly compressed, with implied 2027 earnings suggesting 100% upside if Lyft trades closer to market multiples on improved earnings power. Overall, Lyft represents a structurally improving mobility platform with expanding margins, growing demand penetration, and underappreciated optionality from autonomous vehicles.

Previously, we covered a bullish thesis on Lyft, Inc. (LYFT) by Stefan Waldhauser in April 2025, which highlighted the Freenow acquisition and Europe expansion as key catalysts expanding TAM and reducing North America concentration risk. LYFT's stock price has appreciated by approximately 29.21% since our coverage. crestone shares a similar view but emphasizes earnings recovery, autonomous vehicle-driven market expansion, and underappreciated long-term margin and profitability upside.

Lyft, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held LYFT at the end of the fourth quarter which was 51 in the previous quarter. While we acknowledge the risk and potential of LYFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LYFT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None.