Skip to main content

Lyft stock price prediction for March

By: Invezz
Image for Lyft Q1 earnings report

Shares of Lyft (NASDAQ: LYFT) are up more than 10% this week after the company posted a positive update to note better-than-expected demand for ride-hailing services in February. 

Fundamental analysis: Outlook improved

Lyft said it has seen strong demand for ride-hailing in February, with the average daily rideshare rides, jumped 4.0% month-over-month in February, the company said in an 8-K filing with the SEC.

Given strong demand, Lyft’s last week in February was the best week since the pandemic started in March 2020. 

“Using actual rideshare ride volume for January and February and applying February’s average daily rideshare ride volume to the 31 days in March implies first quarter rideshare ride volume would be down 1.2% quarter-on-quarter,” the company said.

As a result, Lyft is now expecting that the Q1 average daily rideshare ride volume to exceed the one recorded in the fourth quarter of 2020. Moreover, it projects to record three consecutive months of average daily rideshare ride growth.

“This would be a positive contrast to the fourth quarter of 2020 when average daily rideshare ride volume decreased sequentially in the months of November and December. Finally, the Company expects rideshare ride volume beginning the week ending March 21, 2021 to show positive year-on-year growth. This growth trend is expected to continue through the duration of 2021 barring a significant worsening of COVID-19 conditions.”

Following better-than-anticipated demand, Lyft has improved its profit expectations for the first quarter as it now expects to record an EBITDA loss of $135 million instead of a previously-communicated range of $145 million to $150 million.

Technical analysis: Shares soar

Lyft stock price is trading nearly 11% higher this week following a positive trading update from the company. This way, shares of Lyft are now trading above the $60 mark for the first time since August 2019. 

Lyft (LYFT) weekly chart (TradingView)

The price action has exceeded an important resistance line around the $60 handle with a weekly close above suggesting a continuation of this bullish trend. The next target for buyers of Lyft stock is the resistance zone of $65 to $68.

Summary

Shares of Lyft are trading over 10% higher this week following a positive trading update.

The post Lyft stock price prediction for March appeared first on Invezz.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.