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- 📈 Lyft's $750M Buyback Bet
📈 Lyft's $750M Buyback Bet
Amazon’s Zoox accelerates robotaxi rollout plans, Pinterest jumps despite tariff worries, Nvidia wavers on Trump policy, Trump seals first UK trade deal, Lyft stock rises on bigger buyback
Evelio Silvera
May 09, 2025
Good morning.
⚡ The Fast Five → Amazon’s Zoox accelerates robotaxi rollout plans, Pinterest jumps despite tariff worries, Nvidia wavers on Trump policy, Trump seals first UK trade deal, Lyft stock rises on bigger buyback
🔎 Market Trends → Wall Street gains as first trade deal reached; US Futures Jump as Trump Hints as Major Trade Deal
And now…
⏱️ Your 5-minute briefing for Friday, May 9, 2025:
MARKET BRIEF
Before the Open
As of market close 05/08/2025.
Pre-Market
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Fear & Greed
Markets in Review
Trade Talks Boost Wall Street as Dow Climbs on UK Deal
The Dow rose 0.6% to 41,368.6, while the S&P 500 gained 0.6% and the Nasdaq advanced 1.1%. Consumer discretionary and industrials led the charge; health care lagged.
The Big Picture:
Markets climbed Thursday as President Trump signaled more trade deals on deck after announcing a fresh agreement with the UK. The deal includes a steel and aluminum zone, a secure pharma supply chain, and an aviation boost—with British airlines expected to order $10B worth of Boeing (BA) jets.
The optimism isn’t just diplomatic—it’s infectious for investors. With US-China officials meeting this weekend in Switzerland, the tone from both sides has softened. Trump put it simply: “We’re gonna have a good weekend with China.”
Meanwhile, the Fed remains on hold, and jobless claims ticked down, helping reinforce a picture of resilience, even as inflation expectations nudge higher.
Market Movers:
Boeing (BA) surged 3.3%, leading the Dow, after news of the UK aircraft order.
Warner Bros. Discovery (WBD) rose 5.3% as losses narrowed and the streaming story stabilized, despite weak TV revenue.
Papa John's (PZZA) jumped 16% after topping Q1 estimates and reaffirming a sales rebound this year.
Arm Holdings (ARM) fell 6.2% after soft guidance disappointed chip bulls.
Match Group (MTCH) sank 9.6% as layoffs and centralization failed to calm investor nerves.
What They’re Saying:
“There is little in the incoming data to challenge the Fed’s view that the labor market remains solid.”—Michael Pearce, Oxford Economics
WHAT WE’RE WATCHING
Events
There are no events scheduled for today.
Earnings Reports
Today: Honda Motor Company, Coca-Cola, Brookfield Renewable Corporation, Cheniere Energy Partners, EchoStar Corporation
Monday: Fox Corporation, Simon Property Group, Petrobras, DaVita, Brink’s Company, Monday.com
MARKET BRIEF
Leading News
Lyft's $750M Buyback Bet: A Rare Bright Spot in Rideshare
Photo Credit: Thought Catalog
Why it matters:
As Lyft finally achieves profitability after years of losses, its aggressive share repurchase program signals management's conviction that Wall Street has mispriced its improving fundamentals.
Zoom Out:
Lyft (LYFT) is making a calculated wager on itself, expanding its buyback program to $750 million while posting its 16th consecutive quarter of double-digit booking growth. This move comes as the rideshare also-ran attempts to reverse a brutal 80% decline since its 2019 IPO.
For contrarian investors, the company's first profitable quarter may represent an inflection point. While revenue of $1.45 billion slightly missed estimates, rides jumped 16% year-over-year to 218.4 million, suggesting the demand equation is improving despite persistent economic headwinds.
Key Insights:
Financial transformation: Free cash flow reached $280.7 million, more than doubling analyst expectations. This cash-generating capability provides the financial firepower for both acquisitions and share repurchases—luxuries Lyft couldn't afford during its growth-at-all-costs era.
European expansion: The $200 million acquisition of FreeNOW represents a strategic pivot into European markets, where regulatory environments often favor asset-light transportation networks. This provides a potential growth catalyst beyond the saturated North American market.
Demographic diversification: New initiatives like "Lyft Silver" targeting older riders could expand its addressable market beyond its traditional millennial and Gen Z base. Each 1% increase in market penetration among seniors could add approximately $200-300 million in annual bookings.
Market Pulse:
"The rideshare duopoly has evolved from a cash-incinerating experiment to a surprisingly profitable infrastructure layer," notes transportation analyst Maria Chen. "The question isn't whether Lyft survives, but whether autonomous vehicles eventually render their business model obsolete.
Bull’s Take:
With shares trading at just 1.3x sales—a fraction of the broader tech sector's valuation—Lyft's newfound profitability and aggressive capital return program offer patient investors a compelling entry point into the mobility ecosystem. The market appears to be pricing in continued underperformance while ignoring tangible operational improvements.
Headlines
Amazon's Zoox to scale up robotaxi production for US expansion, FT reports (link)
Pinterest Stock Jumps After Offering Stronger-Than-Expected Sales Outlook Despite Tariff Concerns (link)
Nvidia Stock Wobbles On Uncertainty Over Trump AI Chip Policy (link)
Google Dismisses Reports Of Slowing Search Growth On Apple Devices (link)
Trump announces his first trade deal with the UK. Here's what's in it. (link)
Affirm drops 8% on weaker-than-expected guidance for current quarter (link)
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*Hat-tip to pikacap
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