tech
December 19, 2025
Stay away from Lyft as autonomous vehicles disrupt ridesharing market, says Wedbush
Lyft is enjoying a strong year in 2025. That won't carry over into 2026, according to Wedbush.
TL;DR
- Wedbush downgraded Lyft shares to underperform from neutral, with a price target cut from $20 to $16.
- Lyft is up nearly 54% in 2025, on pace for its largest annual gain.
- Analyst Scott Devitt expects autonomous vehicles (AVs) to pressure Lyft's stock in 2026.
- Lyft is considered most at risk due to its exposure to the US ridesharing market and undiversified offerings.
- Devitt believes AV operators will likely opt for direct distribution rather than third-party integration like Lyft.
- Lyft is partnering with Waymo for a robotaxi service in Nashville in 2026, but no new Lyft-Waymo partnerships have been announced.
- Most analysts rate Lyft as a hold, with 33 out of 49 holding a neutral stance.
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