What Happened?
Shares of ride sharing service Lyft (NASDAQ: LYFT) fell 7.9% in the afternoon session after markets tumbled, extending the weakness from the previous week as concerns over the ongoing trade war continued to spread. On Sunday, March 9, 2025, President Trump fielded questions regarding recession worries on FOX News, calling the market struggle "a period of transition," but that didn't do much to calm investors. The sell-off was particularly pronounced in the tech sector, with the Nasdaq falling 3% into correction territory, while the S&P 500 also posted a 2% decline.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Lyft? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Lyft’s shares are very volatile and have had 25 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 26 days ago when the stock dropped 14.6% on the news that the company reported disappointing fourth-quarter results. Its revenue slightly missed, and its EBITDA guidance for the next quarter fell short of Wall Street's estimates. The outlook suggested some bumps in the road ahead, but this quarter still had its bright spots as Lyft blew past analysts' EBITDA and EPS expectations. Overall, this was a weaker quarter.
Lyft is down 17.2% since the beginning of the year, and at $11.31 per share, it is trading 44.2% below its 52-week high of $20.28 from March 2024. Investors who bought $1,000 worth of Lyft’s shares 5 years ago would now be looking at an investment worth $343.82.
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