Ricardo Pillai
3 min read
In This Article:
We came across a bullish thesis on Lyft, Inc. on High Growth Investing’s Substack by Stefan Waldhauser. In this article, we will summarize the bulls’ thesis on LYFT. Lyft, Inc.'s share was trading at $14.53 as of June 20th. LYFT’s trailing and forward P/E ratios were 96.93 and 19.92, respectively, according to Yahoo Finance.
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Lyft’s stock, long overlooked after an 80% decline since its 2019 IPO, is now emerging as a compelling turnaround story driven by strong execution under new leadership. Following years of losses under its founding team, Lyft appointed David Risher as CEO in April 2023. Since then, the company has undergone a strategic reset focused on core ride-hailing operations, sharp cost reductions, and profitability improvements.
With over 5.5 million weekly active riders and 500,000 drivers, Lyft facilitates over 2 million rides daily and has returned to growth, with 2024 gross bookings reaching $16 billion and free cash flow already in the double digits. Adjusted EBITDA margins are expected to rise steadily, reaching 4% of gross bookings by 2027, potentially delivering $1.1–1.35 billion in annual free cash flow. Despite this trajectory, Lyft trades at under 8x trailing free cash flow and a sub-1x revenue multiple, deeply undervaluing its platform.
The market’s hesitation largely stems from fears of disruption by robotaxis. However, Lyft is actively partnering with AV firms like Mobileye and May Mobility and is likely to serve as a key distribution platform for AV providers rather than be replaced by them. Potential strategic buyers—Amazon, Waymo, Tesla, or legacy automakers—could accelerate this shift, especially given Lyft’s unmatched North American scale and sticky user base.
If Lyft hits its mid-term targets, shares could double, even without a takeover. With improving fundamentals, durable free cash flow, and strategic optionality, Lyft offers an attractive entry point for growth investors seeking asymmetric upside in a misunderstood platform.
Previously, we covered a bullish thesis on Lyft, Inc. by Stefan Waldhauser in April 2025, which highlighted the company’s international expansion through the Freenow acquisition and its potential to unlock a broader addressable market. The company's stock price has appreciated by approximately 30% since our coverage. This is because the strategic deal boosted investor confidence despite a limited short-term impact. The thesis still stands as the long-term value of global scale remains intact. Stefan Waldhauser shares an identical view but emphasizes Lyft’s domestic turnaround and accelerating free cash flow profile.
