Lyft Inc. (LYFT) Sets New Record High as California Bill Raises Rosy EBITDA Prospects

We recently published All-Time High Fever: 10 Stocks Soaring and Breaking Records. Lyft Inc. (NASDAQ:LYFT) is one of the best performers in last week’s trading.

Shares of Lyft Inc. (NASDAQ:LYFT) rallied to a new all-time high on Monday, as investors cheered potential benefits from a pending legislation in California that is expected to bolster its EBITDA next year.

During the session, the stock touched a new 52-week price of $20.50 before a slight pullback to end the day just up by 9.77 percent at $20.44 apiece.

Last week, investment firm Bernstein said that California was looking to consider state bills AB 1340 and SB 371, which would allow drivers to negotiate terms as a union while maintaining their independent contractor status and lower the required uninsured motorist coverage.

The latter is expected to reduce Lyft Inc.’s (NASDAQ:LYFT) costs by nearly 30 percent of its 2026 EBITDA, although Bernstein expects most savings would be reinvested through lower prices for consumers and higher driver earnings.

Bernstein maintained its price target of $16 and market perform rating on Lyft Inc. (NASDAQ:LYFT).

In other news, the company announced plans to raise $450 million through the issuance of convertible senior notes due 2030, with proceeds to be used to fund a share buyback program, alongside other general corporate purposes.

While we acknowledge the potential of LYFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.