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

 We came across a bullish thesis on Lyft, Inc. on Value investing subreddit by dimabiryuk. In this article, we will summarize the bulls’ thesis on LYFT. Lyft, Inc.'s share was trading at $18.62 as of September 12th. LYFT’s trailing and forward P/E were 80.96 and 16.47 respectively according to Yahoo Finance.

Lyft (LYFT) has seen its stock price decline sharply since its IPO peak of $88, but it has stabilized in the $8–20 range over the past four years. Recently, the company has shown meaningful improvements, turning profitable in the last several quarters while consistently beating analysts’ earnings expectations. Revenue growth has accelerated, with 20–30% year-over-year increases underscoring the business’s momentum.

Despite this, Lyft remains valued at just over one year’s revenue, creating a significant disconnect between fundamentals and market pricing. The company has also generated $1 billion in free cash flow, highlighting its improving financial strength. Strategically, Lyft acquired the European ride-hailing service FreeNow and entered a partnership with Baidu to launch robotaxis in Europe, positioning itself for exposure to autonomous mobility. Additionally, it teamed up with May Mobility to bring robotaxis to Atlanta, further strengthening its presence in next-generation transportation solutions. Insider alignment is clear, as the Lyft CEO continues to purchase company shares, signaling confidence in the company’s future.

From a market perspective, the stock appears to be emerging from a prolonged accumulation zone, with technical indicators pointing toward a potential breakout. Growing retail interest is also evident, with increasing coverage and investor attention in recent weeks. With profitability, rapid revenue growth, new strategic initiatives, and a clean valuation, Lyft presents a compelling risk/reward setup. In a bullish scenario, the stock could double within months and potentially quadruple over two years, offering investors significant upside if execution and momentum continue.

Previously we covered a bullish thesis on Lyft, Inc. (LYFT) by Stefan Waldhauser in April 2025, which highlighted the $197 million FreeNow acquisition as a pivotal expansion into Europe. The company’s stock price has appreciated approximately by 67% since our coverage. The thesis still stands as international growth remains intact. Dimabiryuk shares a similar view but emphasizes profitability, revenue growth, and free cash flow.

Lyft, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held LYFT at the end of the second quarter which was 56 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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW

Disclosure: None.