Lyft (NASDAQ:LYFT) has been steadily driving along, picking up riders and delivering solid returns throughout 2025. The company’s shares are up over 50% year-to-date, and its most recent Q3 2025 earnings results earlier this month reflected a company that is firmly in the driver’s seat.
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Lyft’s total rides from Q3 of 248.8 million were an all-time high, and its tenth consecutive quarter of double-digit, year-over-year growth. This translated into $1.7 billion in revenues for the quarter, another record.
There is a potential fly lurking in the ointment, however, notes investor Jon Quast: autonomous driving.
“Investors need to take time to assess whether this is a material risk to Lyft’s business model over the long term,” cautions the 5-star investor.
If human drivers are eliminated from the transportation equation, Quast explains that this could disrupt Lyft’s business model. There’s plenty of precedent for innovation disrupting existing businesses, points out the investor, as that’s exactly what Lyft did to the traditional taxi model.
And yet, Quast isn’t ready to throw in the towel when it comes to LYFT. He notes that riders could still use Lyft to order a ride even in a driverless future, and that Lyft is working to build a business to support autonomous vehicle fleets. (Last quarter, Lyft announced a partnership with Alphabet’s Waymo in Nashville.)
“Lyft wouldn’t be worthy of an investment today if it didn’t have a future. But I believe it does,” adds Quast.
The investor argues that Lyft can be a “strong performer” going forward, citing the company’s recent record-breaking quarter. Quast is also encouraged by Lyft’s more than $1 billion in free cash flow during the past 12 months, another all-time high.
When it comes to valuation, Quast notes that LYFT is trading at less than 9 times its free cash flow. To put this in perspective, UBER is trading at more than double this amount.
All this combines to suggest that LYFT is worth holding, concludes the investor.
“This is a business with a strong customer base that can keep carrying it higher,” sums up Quast. (To watch Jon Quast’s track record, click here)
Wall Street offers a mix of opinions, but most analysts are content to remain on the sidelines. With 8 Buys, 21 Holds, and 1 Sell, LYFT carries a consensus Hold (i.e., Neutral) rating. Its 12-month average price target of $24.10 implies an upside north of 20%. (See LYFT stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.