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Lyft (NASDAQ:LYFT) just delivered a solid quarter that sent shares soaring 23% at 12.30pm today. The ride-sharing giant boosted its share buyback plan to $750 million, aiming to deploy $500 million over the next yeara move that caught the attention of activist investor Engine Capital, which is now halting its campaign against Lyft. CEO David Risher told CNBC that despite economic uncertainty, consumer demand remains strong, with rides up 16% to 218.4 million, slightly beating expectations. Gross bookings also rose 13% year-over-year to $4.16 billion, marking the 16th straight quarter of growth.
The market response was swift. Goldman Sachs (NYSE:GS) upgraded Lyft to a buy, citing the company's execution in what it described as a stable industry backdrop. That contrasts sharply with rival Uber, whose shares dipped earlier this week after reporting mixed results. Lyft's revenue climbed 14% to $1.45 billion, just shy of the $1.47 billion forecast by LSEG. Still, net income hit $2.57 million, a sharp turnaround from last year's $31.54 million loss.
Yet there's a bigger play here. Lyft's push to ramp up buybacks amid ongoing economic uncertainty signals a renewed focus on shareholder value. With Goldman Sachs now backing the stock and Engine Capital stepping back, Lyft could be positioning itself for a stronger second half of 2025. The question is: Can it sustain this momentum as market conditions tighten?
This article first appeared on GuruFocus.