Are Lyft Shares a Buy After Investment Firm Owl Creek Initiated a Big Position in the Stock?
Key Points
Owl Creek Asset Management purchased over two million shares in Lyft.
The move equates to 1.74% of 13F reportable assets under management.
Lyft becomes the fund's 3rd-largest holding following the trade.
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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
| Metric | Value |
|---|---|
| Price (as of market close 2025-11-14) | $23.14 |
| Market Capitalization | $9.24 billion |
| Revenue (TTM) | $6.27 billion |
| Net Income (TTM) | $150.69 million |
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.
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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.
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