From Investing.com:

Lyft Inc shares slipped 1.4% after analysts at Goldman Sachs downgraded the stock to Sell. Despite solid growth and stable competition in the Mobility/Delivery Internet sector, signs of consumer demand volatility are a concern. Uber and Lyft’s competitive positioning and topline trends in US Mobility are seen as stable by analysts.

Mobility and Delivery are among the fastest growing verticals in the internet coverage, according to Goldman Sachs. Double-digit market growth is expected across ridesharing, food delivery, and new verticals like grocery, convenience, and on-demand retail. Investor debates will focus on how companies execute against these opportunities and translate scale into incremental margins and rising profitability through 2024 and beyond.

Goldman’s analysis shows that the advertising opportunity remains more significant within Delivery, while the Mobility sector should only feel “a small tailwind.” The LYFT stock downgrade is a result of the company’s share price increasing by nearly 35% since its last Q3’23 earnings results in early November.

Despite the downgrade, analysts are still constructive on LYFT’s operating trajectory and believe that revenue growth can reaccelerate. However, they see execution risks around this trajectory and believe that the inflection is already well reflected in Street estimates in 2024.



Read more: Lyft stock slips as Goldman cuts to Sell By Investing.com