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Bernstein Maintains Cautious Stance on Lyft (LYFT) Amid Regulatory Changes

Lyft Inc. (NASDAQ:LYFT) is one of the best stocks for day trading. On September 9, an analyst from Bernstein reiterated a Market Perform rating on Lyft (NASDAQ:LYFT) with a $16 price target, pointing to pending legislation in California as a key catalyst.

Photo by Austin Distel on Unsplash

Lawmakers are considering AB 1340, which would allow drivers to negotiate terms as a union while maintaining their independent contractor status, and SB 371, which would lower the required uninsured motorist coverage.

The analyst estimated the insurance changes could reduce costs by nearly 30% of the projected 2026 EBITDA, though much of that benefit may be reinvested through lower fares and higher driver earnings. He sees potential for roughly 6% trip growth in California, adding about 80 basis points to consolidated volumes, though higher labor costs could offset some gains beyond 2027.

A few days earlier, on September 5, Wells Fargo’s Ken Gawrelski raised his price target on Lyft Inc. (NASDAQ:LYFT) to $16 from $15 while maintaining an Equal Weight stance. His revisions factored in a stronger advertising outlook, which he expects will provide incremental support to Lyft’s long-term profitability. Together, the two updates highlight both regulatory and business levers that could shape Lyft Inc.’s (NASDAQ:LYFT) financial trajectory in the coming years.

Lyft Inc. (NASDAQ:LYFT) is a U.S.-based ridesharing company that connects passengers with drivers through its mobile platform.

While we acknowledge the potential of LYFT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LYFT and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 15 Best Multibagger Stocks to Invest in Right Now and 10 Best High Beta Stocks To Buy Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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