Wedbush Warns of Lyft’s (LYFT) Vulnerability to AV Disruption, Overestimated Long-Term Valuation

20 hours ago 3

Maham Fatima

Wed, December 31, 2025 astatine 10:33 AM CST 2 min read

Lyft Inc. (NASDAQ:LYFT) is 1 of the best debased priced exertion stocks to bargain according to analysts. On December 19, Wedbush downgraded Lyft to Underperform from Neutral, portion mounting a terms people of $16, which was brought down from $20. Wedbush identified Lyft arsenic highly susceptible to AV disruption owed to its exclusive absorption connected the US ridesharing marketplace and deficiency of a diversified concern model. The steadfast besides argued that Lyft’s semipermanent valuation is being overestimated, arsenic existent marketplace projections neglect to relationship for however AVs could negatively interaction the company’s aboriginal terminal value.

Earlier connected December 11, Jefferies besides chopped the firm’s terms people connected Lyft Inc. (NASDAQ:LYFT) to $22 from $23, portion keeping a Hold standing connected the shares. In the 2026 Internet Playbook note, the steadfast advised investors to stay selective with Internet stocks. The steadfast warned that rising operational investments whitethorn hinder nett borderline growth, portion fears that AI could bypass accepted platforms whitethorn forestall banal valuations from rising.

Wedbush Warns of Lyft’s (LYFT) Vulnerability to AV Disruption, Overestimated Long-Term Valuation

However, connected December 9, Wells Fargo raised the firm’s terms people connected Lyft to $26 from $20 with an Equal Weight standing connected the shares. The steadfast acknowledged that Lyft’s presumption arsenic a specialized US rideshare relation allows it to payment straight from a beardown 2026 home marketplace forecast. However, the steadfast remains connected the sidelines due to the fact that it believes that the company’s caller enlargement into planetary assets volition apt little its wide maturation complaint and suppress its valuation multiple.

Lyft Inc. (NASDAQ:LYFT) operates a peer-to-peer marketplace for on-demand ridesharing successful the US and Canada. The institution operates multimodal proscription networks done the Lyft level and mobile-based applications.

While we admit the imaginable of LYFT arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.