Shares of Lyft (LYFT 27.96%) are surging on Friday. The ride-sharing firm’s inventory gained 27.4% as of three:25 p.m. ET and was up as a lot as 28.3% earlier within the day. The bounce comes because the S&P 500 (^GSPC -0.07%) and the Nasdaq Composite (^IXIC 0.00%) had been primarily flat.
The corporate reported a worthwhile Q1 and introduced a considerably expanded share buyback program.
Lyft achieves one other worthwhile quarter
Lyft as soon as once more is working within the black, after years of struggling to show a revenue. This marks the third optimistic quarter of the final 4. The corporate’s web earnings of $2.57 million, albeit a small revenue, is a big enchancment in comparison with Q1 2024’s web lack of $31.54 million. And its 14% top-line progress barely missed Wall Road’s goal, however the continued profitability appeared extra vital to traders.
Buyers had been additionally impressed with Lyft’s free money stream of $280.7 million, greater than doubling the analyst estimate of $136.3 million.
Operationally, it was additionally a optimistic quarter; the corporate’s whole rides jumped 16%, exceeding expectations. CEO David Risher identified that the quarter marked “the sixteenth straight interval of double-digit year-over-year gross reserving progress for the corporate.”

Picture supply: Getty Photos.
Lyft expands its share buyback program
On the energy of its free money stream technology, Lyft introduced it has approved as much as $750 million in inventory buybacks. This substantial buyback program indicators administration’s confidence within the firm’s monetary place. Buyers took notice.
The corporate is popping a nook
Regardless of at present’s beneficial properties, the inventory has shed almost 80% of its worth since March 2021. Nonetheless, the mixture of profitability and robust operational progress offers the corporate momentum. Additionally it is valued at lower than a 3rd of Uber in price-to-sales. I believe Lyft could make an honest addition to your portfolio.
Johnny Rice has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Uber Applied sciences. The Motley Idiot has a disclosure coverage.