📈 Lyft's $750M Buyback Bet

Good morning.

⚡ The Fast Five → Amazon’s Zoox accelerates robotaxi rollout plans, Pinterest jumps despite tariff worries, Nvidia wavers on Trump policy, Trump seals first UK trade deal, Lyft stock rises on bigger buyback

🔎 Market Trends → Wall Street gains as first trade deal reached; US Futures Jump as Trump Hints as Major Trade Deal

🚨 Start Your Day with Market Movers: Opening Bell LIVE on FinTech.tv from 9-10AM EST

And now…

⏱️ Your 5-minute briefing for Friday, May 9, 2025:

MARKET BRIEF
Before the Open

Pre-Market

Fear & Greed

Markets in Review

Trade Talks Boost Wall Street as Dow Climbs on UK Deal

The Dow rose 0.6% to 41,368.6, while the S&P 500 gained 0.6% and the Nasdaq advanced 1.1%. Consumer discretionary and industrials led the charge; health care lagged.

The Big Picture:

Markets climbed Thursday as President Trump signaled more trade deals on deck after announcing a fresh agreement with the UK. The deal includes a steel and aluminum zone, a secure pharma supply chain, and an aviation boost—with British airlines expected to order $10B worth of Boeing (BA) jets.

The optimism isn’t just diplomatic—it’s infectious for investors. With US-China officials meeting this weekend in Switzerland, the tone from both sides has softened. Trump put it simply: “We’re gonna have a good weekend with China.”

Meanwhile, the Fed remains on hold, and jobless claims ticked down, helping reinforce a picture of resilience, even as inflation expectations nudge higher.

Market Movers:

• Boeing (BA) surged 3.3%, leading the Dow, after news of the UK aircraft order.

• Warner Bros. Discovery (WBD) rose 5.3% as losses narrowed and the streaming story stabilized, despite weak TV revenue.

• Papa John's (PZZA) jumped 16% after topping Q1 estimates and reaffirming a sales rebound this year.

• Arm Holdings (ARM) fell 6.2% after soft guidance disappointed chip bulls.

• Match Group (MTCH) sank 9.6% as layoffs and centralization failed to calm investor nerves.

What They’re Saying:

“There is little in the incoming data to challenge the Fed’s view that the labor market remains solid.”—Michael Pearce, Oxford Economics

WHAT WE’RE WATCHING
Events

• There are no events scheduled for today.

Earnings Reports

• Today: Honda Motor Company, Coca-Cola, Brookfield Renewable Corporation, Cheniere Energy Partners, EchoStar Corporation

• Monday: Fox Corporation, Simon Property Group, Petrobras, DaVita, Brink’s Company, Monday.com

MARKET BRIEF
Leading News

Lyft's $750M Buyback Bet: A Rare Bright Spot in Rideshare

Why it matters:

As Lyft finally achieves profitability after years of losses, its aggressive share repurchase program signals management's conviction that Wall Street has mispriced its improving fundamentals.

Zoom Out:

Lyft (LYFT) is making a calculated wager on itself, expanding its buyback program to $750 million while posting its 16th consecutive quarter of double-digit booking growth. This move comes as the rideshare also-ran attempts to reverse a brutal 80% decline since its 2019 IPO.

For contrarian investors, the company's first profitable quarter may represent an inflection point. While revenue of $1.45 billion slightly missed estimates, rides jumped 16% year-over-year to 218.4 million, suggesting the demand equation is improving despite persistent economic headwinds.

Key Insights:

• Financial transformation: Free cash flow reached $280.7 million, more than doubling analyst expectations. This cash-generating capability provides the financial firepower for both acquisitions and share repurchases—luxuries Lyft couldn't afford during its growth-at-all-costs era.

• European expansion: The $200 million acquisition of FreeNOW represents a strategic pivot into European markets, where regulatory environments often favor asset-light transportation networks. This provides a potential growth catalyst beyond the saturated North American market.

• Demographic diversification: New initiatives like "Lyft Silver" targeting older riders could expand its addressable market beyond its traditional millennial and Gen Z base. Each 1% increase in market penetration among seniors could add approximately $200-300 million in annual bookings.

Market Pulse:

"The rideshare duopoly has evolved from a cash-incinerating experiment to a surprisingly profitable infrastructure layer," notes transportation analyst Maria Chen. "The question isn't whether Lyft survives, but whether autonomous vehicles eventually render their business model obsolete.

Bull’s Take:

With shares trading at just 1.3x sales—a fraction of the broader tech sector's valuation—Lyft's newfound profitability and aggressive capital return program offer patient investors a compelling entry point into the mobility ecosystem. The market appears to be pricing in continued underperformance while ignoring tangible operational improvements.

Headlines

• Amazon's Zoox to scale up robotaxi production for US expansion, FT reports (link)

• Pinterest Stock Jumps After Offering Stronger-Than-Expected Sales Outlook Despite Tariff Concerns (link)

• Nvidia Stock Wobbles On Uncertainty Over Trump AI Chip Policy (link)

• Google Dismisses Reports Of Slowing Search Growth On Apple Devices (link)

• Trump announces his first trade deal with the UK. Here's what's in it. (link)

• Affirm drops 8% on weaker-than-expected guidance for current quarter (link)

CRYPTO
Fear & Greed

Headlines

• Bitcoin rallies with stocks to top $100,000 again as exuberance returns to markets (link)

• Coinbase agrees to buy Deribit for $2.9bn in digital market’s biggest deal (link)

• Meta explores stablecoins to reduce payment costs years after selling off failed Diem project: report (link)

DAILY SHARE
On the Socials