Lyft Gets Lone Sell Rating as Arete Downgrades Stock on Uber Competition
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The intense competition Lyft Inc. faces from rival Uber Technologies Inc. is threatening to pressure its margins, according to an analyst who has become the lone bear on the stock.
Arete Research Services LLP downgraded Lyft to sell from neutral, with analyst Oliver Lester noting that competition from Uber in areas such as pricing were forcing the ride-hailing firm to “sacrifice” margins in order to maintain growth. As a result, Lester sees limited scope for Lyft to improve margins in fiscal year 2025.