Yahoo Finance Live checks out Lyft shares following an analyst upgrade.
- My pick today is Lyft, shares climbing after KeyBank upgraded the stock. You can see it now up just about 3/10 of a percent. They upgrade the stock to overweight, setting its price target at $24 a share, analyst Justin Patterson arguing that the company has turned a corner. And that's being helped by, quote, "aggressive cost cutting measures." He sees a, quote, "meaningful opportunity for EBITDA to improve in 2023," this year.
Lyft shares off to a very solid start since January 1. You're looking at significant gains, up more than 40% this month alone. But that's after sinking more than 70% last year, Josh. We know their rival, Uber, have done-- have, I guess, really expanded their business, have a massive advantage. The huge argument on the street is over Lyft right now, so Lyft might be able to claw back some of that business following that 70% drop. But I think there's still a lot of questions just in terms of how well or how much they are going to be able to grow that market share over the coming year.
JOSH SCHAFER: We've certainly seen Lyft more focused in the traditional rideshare business, rather than, say, Uber Eats or all the different places Uber is expanding. But I think another interesting thing to point out here, Seana, is when you think about the layoffs. Two months ago, you had-- excuse me, Lyft, not Uber, laying off about 13% of employees.
Now analysts are starting to talk about, well, the cost cutting is working, wondering how often we're going to start hearing that from these tech analysts, when we think about all these layoffs we've been reporting on in the last couple of weeks. In a couple of months, where do people start liking the cost cutting, and where did that maybe work or has not worked? It will be interesting to watch for sure.