Lyft, Inc. (LYFT): A Bull Case Theory

We came across a bullish thesis on Lyft, Inc. on Valueinvesting subreddit by InternationalTop4495. In this article, we will summarize the bulls’ thesis on LYFT. Lyft, Inc.'s share was trading at $14.30 as of July 25^th. LYFT’s trailing and forward P/E were 95.33 and 21.32, respectively according to Yahoo Finance.

Lyft (LYFT) is emerging as a compelling asymmetric investment opportunity, benefiting from a management-led turnaround, a strengthening competitive position, and a deeply discounted valuation. Following the April 2023 appointment of CEO David Risher, a veteran of Microsoft and Amazon, the company has sharpened its focus on core operations, with improved execution that remains underappreciated by the market.

Ridesharing continues to grow at a 15–20% CAGR as margins turn sustainably positive, placing Lyft and Uber in a structurally advantaged duopoly with powerful network effects and high barriers to entry. Lyft’s recent $200M acquisition of FREENOW has significantly expanded its European footprint, boosting its active user base by 25% and roughly doubling its addressable market, with financial impact expected to materialize in the second half of the year.

Despite holding ~25% of the U.S. rideshare market and delivering six consecutive quarters of double-digit revenue growth, Lyft trades at only ~1x revenue and a ~$6B market cap—just 1/30th of Uber’s valuation—even after achieving profitability in 2023. Fears of autonomous disruption are overstated; the likely evolution toward a manufacturer–operator partnership model would remove driver costs, directly benefiting Lyft and Uber.

Near-term technicals are favorable, with the stock holding June lows around $14.50 and upcoming earnings serving as a potential catalyst. A sale of call options at $17, expiring June 2026, offers leveraged exposure, but equity ownership remains an equally attractive long-term play. With improving fundamentals, multiple catalysts, and limited downside at current levels, Lyft offers an appealing risk/reward profile poised for rerating as investors reassess its growth and profitability trajectory.

Previously we covered a bullish thesis on Lyft, Inc. by Stefan Waldhauser in April 2025, which highlighted the Freenow acquisition expanding Lyft’s global reach and easing concerns about its domestic focus. The stock has appreciated about 28% since then as the expansion thesis gained traction. InternationalTop4495 shares a similar view but emphasizes Lyft’s turnaround, valuation, and competitive positioning.

Lyft, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held LYFT at the end of the first quarter which was 55 in the previous quarter. While we acknowledge the potential of LYFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.