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Lyft Stock Pops 19% as Buyback, Ride Metrics Impress Wall Street

Heavy options volumes and price-target hikes are fueling LYFT's rally

Deputy Editor
May 9, 2025 at 10:36 AM
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Lyft Inc (NASDAQ:LYFT) stock is up 19.5% to trade at $15.54 at last glance, after the ride-sharing company increased its share buyback program to $750 million. While first-quarter revenue missed estimates, rides jumped 16% year-over-year to 218.4 million, topping forecasts of 215.1 million. Gross bookings rose 13% to $4.16 billion, narrowly beating expectations, while active riders climbed 11% to 24.2 million. CEO David Risher noted this marked Lyft’s 16th consecutive quarter of double-digit gross booking growth.

Lyft stock is now trading back above its year-to-date breakeven level, up 19.5% in 2025. The security is pacing for its best single-session gain since November, as well as its fifth-straight weekly win. Gapping to its highest level since early February, LYFT has also reclaimed support from its 320-day moving average.

At least four analysts raised their price targets following the report, with Barclays issuing the highest so far at $20 from $19. There’s still room for more upward revisions, as 31 of the 39 brokerages covering the stock maintain a “hold” or worse rating.

Options activity is also surging in response to the news. So far today, 89,000 calls and 36,000 puts have changed hands -- 15 times the average intraday volume. The weekly 5/9 15-strike call is the most popular contract, followed by the 15.50-strike call in the same series, with new positions being opened at the latter.

This denotes a shift in sentiment, as short-term options traders have been more bearish than usual. Lyft stock’s Schaeffer’s put/call open interest ratio (SOIR) of 0.79 ranks in the 93rd percentile of its annual range, suggesting elevated put interest among near-term traders.

Meanwhile, short interest is beginning to unwind. The number of shares sold short dropped 1.9% in the most recent reporting period, with 40.77 million shares still sold short — accounting for 10.3% of LYFT’s total float.

 

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