Why Lyft Shares Are Skyrocketing This Week - The Unstoppable Rally Explained

Lyft's stock just caught rocket fuel—and Wall Street can't look away.

Ride-hailing giant Lyft is tearing up the charts this week, leaving analysts scrambling and short sellers sweating. The surge isn't just noise—it's a full-blown market momentum play that's got everyone from day traders to institutional funds jumping in.

What's driving the frenzy?

Speculation's running wild about Lyft's next strategic move. Could it be an autonomous vehicle partnership? A surprise expansion into new markets? The market's betting yes—and pouring gasoline on the fire.

Volume's through the roof, liquidity's pouring in, and the shorts are getting squeezed into oblivion. Classic market mechanics meeting pure FOMO—a combination that rarely ends quietly.

Meanwhile, traditional auto stocks are watching from the sidelines—another reminder that legacy industries move like glaciers while tech-enabled disruptors operate at light speed. Sometimes the market gets it right; sometimes it's just chasing momentum. Either way, Lyft's riding high—for now.

Tapping into the autonomous trade

Earlier this week, Lyft announced a partnership with Waymo for the company's upcoming Nashville launch. By 2026, riders will be able to hail Waymo vehicles through the Lyft app. Additionally, a subsidiary of Lyft will manage Waymo's Nashville fleet, including vehicle maintenance, infrastructure, and depot operations. Waymo has long been partnered with Lyft's rival, so this shows that Lyft may also be able to tap into the autonomous trade, which has driven Uber's stock to all-time highs this year.

Image source: Getty Images.

analyst John Colantuoni maintained a hold rating on Lyft but increased his price target from $15 to $22 per share. In a research note, Colantuoni said Waymo's decision to partner with both Uber and Lyft shows that the ride-hailing giants will benefit from essentially being distributors of autonomous vehicles, likely due to their large platforms and regulatory expertise.

In other news, analysts at Bernstein said the California state legislature may consider a pair of bills, one allowing drivers at ride-hailing companies to work out employment terms as a union while staying as independent contractors, the other that reducing the coverage that ride-hailing companies are required to provide for uninsured drivers. The second bill could dramatically lower expenses at Lyft, according to the analysts.

Should you buy the stock?

It's definitely been a good week for Lyft. After the big run, the stock now trades at about 18 times forward earnings. While the company has improved profitability this year, I WOULD maybe take a breather right now. The autonomous trade is promising, but I want to see more evidence that Lyft can form more partnerships and make the autonomous industry a material driver of revenue growth.