Lyft stock price prediction for March

Shares of Lyft (NASDAQ: LYFT) are up more than 10% this week after the company posted a positive update to note better-than-expected demand for ride-hailing services in February. 

Fundamental analysis: Outlook improved

Lyft said it has seen strong demand for ride-hailing in February, with the average daily rideshare rides, jumped 4.0% month-over-month in February, the company said in an 8-K filing with the SEC.

Given strong demand, Lyft’s last week in February was the best week since the pandemic started in March 2020. 

As a result, Lyft is now expecting that the Q1 average daily rideshare ride volume to exceed the one recorded in the fourth quarter of 2020. Moreover, it projects to record three consecutive months of average daily rideshare ride growth.

Following better-than-anticipated demand, Lyft has improved its profit expectations for the first quarter as it now expects to record an EBITDA loss of $135 million instead of a previously-communicated range of $145 million to $150 million.

Technical analysis: Shares soar

Lyft stock price is trading nearly 11% higher this week following a positive trading update from the company. This way, shares of Lyft are now trading above the $60 mark for the first time since August 2019. 

The price action has exceeded an important resistance line around the $60 handle with a weekly close above suggesting a continuation of this bullish trend. The next target for buyers of Lyft stock is the resistance zone of $65 to $68.

Summary

Shares of Lyft are trading over 10% higher this week following a positive trading update.