Are Lyft Shares a Buy After Investment Firm Owl Creek Initiated a Big Position in the Stock?

Investment management company Owl Creek Asset Management, L.P. disclosed a new $54.76 million position in Lyft (NASDAQ:LYFT) in its November 14, 2025 filing with the Securities and Exchange Commission, marking a significant addition to its portfolio.

What happened

Owl Creek Asset Management initiated a new position in Lyft, acquiring 2,487,962 shares valued at $54.76 million as of September 30, 2025. This is the first reported holding in Lyft for the fund in recent filings.

What else to know

This new Lyft stake represents 1.74% of Owl Creek's 13F reportable assets under management as of September 30, 2025.

Top holdings after the filing:

• NASDAQ:ATEX: $116.19 million (13.2% of AUM)
• NYSE:PCG: $92.06 million (10.5% of AUM)
• NASDAQ:LYFT: $54.76 million (6.2% of AUM)
• NASDAQ:TLN: $49.40 million (5.6% of AUM)
• NASDAQ:FTAI: $43.93 million (5.0% of AUM)

As of November 14, 2025, shares of Lyft were priced at $23.14, up 29.1% over the prior year, outperforming the S&P 500 by 17.64 percentage points.

Company Overview

Company Snapshot

• Lyft offers a multimodal transportation platform including ridesharing, car rentals, shared bikes and scooters, and access to autonomous vehicles.
• The company generates revenue primarily by connecting drivers with riders, and providing transportation solutions through its digital marketplace and subscription services.
• Lyft targets individual consumers, enterprise clients, universities, and organizations seeking on-demand mobility solutions in the United States and Canada.

Lyft operates a large-scale peer-to-peer transportation network, leveraging technology to connect riders and drivers across major North American markets. The company’s strategy centers on expanding its multimodal offerings and integrating diverse mobility options within a single platform.

Lyft’s competitive advantage lies in its flexible service model and ability to address a wide range of transportation needs for both individual and institutional clients.

Foolish take

Owl Creek Asset Management's purchase of Lyft shares is noteworthy because the investment firm initiated a position in the transportation company, and the buy was significant enough to catapult Lyft into the top five holdings.

The transaction suggests Owl Creek has a bullish outlook on Lyft, and it's easy to see why. In the third quarter, Lyft delivered record revenue of $1.7 billion, a strong 11% year-over-year increase. This helped Q3 net income to reach a record $46.1 million compared to a net loss of $12.4 million in the prior year.

The company's future looks promising. It is partnering with self-driving car companies, such as Alphabet-owned Waymo. This positions Lyft to slowly reduce its reliance on human drivers over time, which has the potential to improve profit margins.

Lyft looks like a solid business to invest in. However, shares hit a 52-week high of $25.54 on Nov. 12, causing the stock's valuation to increase. The price-to-earnings ratio is currently over 50, which is a bit pricey. The prudent approach is to wait for shares to dip before deciding to buy.

Glossary

Asset Management: The professional management of investments such as stocks, bonds, and other assets for clients.
Position: The amount of a particular security or asset owned by an investor or fund.
13F Reportable Assets: Securities that institutional investment managers must disclose quarterly to the SEC in Form 13F filings.
Assets Under Management (AUM): The total market value of assets a fund or investment firm manages on behalf of clients.
Holding: A security or asset currently owned by an investor or fund.
Stake: The ownership interest or share an investor holds in a company.
Outperforming: Achieving better returns compared to a benchmark or index, such as the S&P 500.
Multimodal Transportation Platform: A system offering multiple types of transportation services, like ridesharing, bikes, and car rentals, within one platform.
Peer-to-Peer Transportation Network: A platform connecting individual service providers (like drivers) directly with consumers needing transportation.
Digital Marketplace: An online platform where buyers and sellers interact to exchange goods or services.
Subscription Services: Services offered for a recurring fee, granting ongoing access to products or features.
TTM: The 12-month period ending with the most recent quarterly report.

Robert Izquierdo has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet. The Motley Fool recommends Lyft. The Motley Fool has a disclosure policy.