Lyft Surges Ahead With an Inaugural Share Repurchase Plan – Buyback Wednesdays

I am embarrassed to say that I have never downloaded the Lyft app. Despite all the complaints about Uber and friends claiming Lyft is cheaper at times, I am mostly stuck to Uber because the app works for me both when I am traveling domestically as well as in most international locations. I was amused to discover that Uber was even trying to get me to hail a car in Venice, where there were no cars to be found.

Over the years, I paid even less attention to Lyft’s stock as it always seemed to be a distant second and the company didn’t have someone like Dara Khosrowshahi at its helm to move the needle for shareholders. That changed when I noticed a large stock buyback announcement by the company.

Buyback activity surged in February with 160+ firms announcing share buyback plans, all of which are listed on our Stock Buyback Announcements page. Lyft (LYFT) announced its first-ever buyback and also scored 83 on our IA quant model (without momentum and valuation factors) —well above the threshold of 70 we use to take a closer look at companies.

Lyft, Inc. (LYFT), the second-largest rideshare company in the U.S., has built its brand around a more approachable and community-driven image, stemming from its early days of displaying large pink mustaches on the car bumpers and fist-bumps by its drivers. This positioning appeals to users who view Uber Technologies, Inc. (UBER) as a corporate or aggressive alternative. With a market capitalization of $5.46 billion, Lyft continues to navigate a fiercely competitive landscape, facing strong rivalry from industry leader Uber.

The recent news of Tesla seeking approval to launch a ride-hail service in California, caused a surge in share prices for both Lyft and Uber. However, Tesla has clarified that they intend to operate independently rather than pursue partnerships, positioning themselves as a direct competitor to ride-hailing giants Uber and Lyft, as well as the autonomous taxi service Waymo. The automaker has the permit to launch his AVs in California with driver assistance but is awaiting permission for a driverless ride.

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