Is $LYFT (Lyft Inc.) stock a buy after its earnings release?

$LYFT $53.48 (-5% on 5/5) slid down after Q1 revenue of $609M (+12% QoQ) and adjusted EBITDA of($73M) – +15% QoQ.

$LYFT believes it can be adjusted EBITDA breakeven by Q2 2021, because of cost cutting measures it adopted post Covid, even with 35% less rides than in 2020.

$LYFT had lower drivers mostly due to Covid vaccinations and federal unemployment benefits, but is seeing ride volume rebound – especially to airports (+65% April relative to Jan).

$LYFT Positives: a) Increased Revenue per active rider (+0.2%) to $45.13 b) Lower costs leading to profitability and c) New offerings in B2B delivery.

$LYFT Negatives: a) Gross margins lower (-4%) thanks to Covid insurance, b) Growth is not as strong as $UBER

Analyst Updates

Deutsche Bank raises PT (Price Target) to $75

Stifel raised PT to $60

Credit Suisse raised PT to $76

Barclays raised PT to $60

Nomura raised PT to $63

Morgan Stanley raised PT to $70

Metrics

Active riders in Q1 went to 13.49M (-36% YoY)

Revenue per active rider in Q1 went to $45.13 (+0.2%)

Recommendation

I dont have a position in $LYFT but see $UBER as a better risk / reward at this point, and will wait until $UBER reports earnings end of day 5/5.