Lyft Shares Drop 11.2% in Four Weeks as Analysts Boost Estimates
Lyft's shares have fallen 11.2% over the past four weeks and entered technical oversold territory, suggesting selling pressure may have abated. A majority of Wall Street analysts have raised full-year earnings estimates for the ride-hailing company, indicating potential for a trend reversal.
1. Significant Four-Week Decline Places Lyft in Oversold Territory
Over the past four weeks, Lyft shares have fallen by 11.2%, pushing the stock’s 14-day Relative Strength Index (RSI) down to 28.5—well below the 30 threshold that technical traders use to identify oversold conditions. This marked decline contrasts sharply with the NASDAQ’s 3.8% gain over the same period and reflects a surge in supply following weaker-than-expected quarterly guidance issued six weeks ago. Daily trading volume has averaged 12.3 million shares, 25% above its 30-day average, suggesting heavy selling pressure may be nearing exhaustion.
2. Wall Street Analysts Lift Earnings Outlook for a Potential Reversal
A broad consensus shift among analysts has emerged in recent weeks, with 14 out of 18 covering firms raising their full-year earnings per share estimates for Lyft. The aggregate 2026 EPS projection has climbed by 9% since the start of January, driven by stronger revenue forecasts linked to recent promotional partnerships in key urban markets. Meanwhile, the average price target across this group now sits 17% above current levels, underscoring confidence that margins will expand as ride volumes stabilize and cost controls take hold.