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Lyft, Inc. (LYFT): Billionaire David Tepper Trims Holding

Lyft, Inc. (NASDAQ:LYFT) is one of Billionaire David Tepper’s 10 Small and Midcap Stock Picks with Huge Upside Potential.

Lyft, Inc. (NASDAQ:LYFT) has featured in the 13F portfolio of Appaloosa Management LP since the first quarter of 2024. Back then, this position comprised under 500,000 shares. In the following quarter, the fund increased this to nearly 8 million shares. A further addition was made in the third quarter of 2024 and share ownership jumped to nearly 16 million. Thereafter, the hedge fund has steadily trimmed this holding in every quarter. Filings for the fourth quarter of 2025 show that the fund owned 3.8 million shares in the company, down 32% compared to filings for the third quarter of 2025.

Photo by Arturo Añez on Unsplash

Lyft, Inc. (NASDAQ:LYFT) is transitioning from a growth at all costs model to one focused on Adjusted EBITDA profitability. Hedge funds are bullish on this transition. Under new leadership, Lyft has executed aggressive cost-reduction strategies, including layoffs and a reduction in real estate footprints, which has significantly improved operational leverage. Funds are betting on the company’s guidance for expanding margins through 2026, driven by better insurance cost management and more efficient driver incentives. After years of losing ground to Uber, Lyft has shown signs of stabilizing its North American market share. Buying number two players makes sense because the price wars between Uber and Lyft have cooled. Both companies are now focused on healthy take rates rather than burning cash to undercut each other. Recent data showed an 18% year-over-year increase in active riders, signaling that the platform remains a vital part of the transportation ecosystem despite heavy competition.

While we acknowledge the risk and potential of LYFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LYFT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 12 Best Stocks to Buy According to Billionaire David Abrams and 15 Best Stocks to Buy According to Billionaire Seth Klarman.

Disclosure: None. Follow Insider Monkey on Google News.

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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