Valentine's Day Strike Paints Cautionary Picture For Lyft Ahead Of Q4 Earnings: A Technical Analysis

Lyft Inc LYFT is reporting fourth-quarter earnings on Tuesday, Feb. 13. Wall Street expects 8 cents in EPS and $1.22 billion in revenues as the company reports after market hours.

The San Francisco-based company is known for being a popular ride-sharing platform that connects passengers with drivers through a mobile app.

Lyft grabbed headlines lately for reportedly planning to stage a strike on Valentine’s Day to demand fair pay. Thousands of drivers associated with ride-sharing giants Uber Technologies Inc UBER, Lyft, and food delivery app DoorDash DASH are joining the strike.

Last week, Lyft also told Reuters that it would guarantee weekly earnings for its drivers, a first in the U.S. ride-hailing industry.

Related: Highway To Heartbreak – Uber, Lyft, DoorDash Drivers Plan Nationwide Strike On Valentine’s Day Over Fair Pay

Lyft Stock Technical Setup Ahead Of Q4 Earnings

The technical analysis setup of Lyft signals a strongly bearish trend. The On-Balance Volume (OBV) indicator has been trending downwards. OBV falls when volume on down days is stronger. Falling OBV reflects negative volume pressure that can foreshadow lower prices.

Looking at averages, the share price is consistently below its 5, 20, and 50-day exponential moving averages, highlighting significant selling pressure and indicating a potential risk of further bearish movements. Additionally, LYFT’s 8, 20 & 50-day exponential moving averages also indicates a Sell.

The Moving Average Convergence Divergence (MACD) indicator is -0.15, reinforcing the overall Sell sentiment for LYFT stock.

Investors should exercise caution and closely monitor the market dynamics for potential further downtrends.

Lyft Analysts Consensus Ratings

Ratings & Consensus Estimates: Consensus analyst ratings on Lyft stock stand at a Neutral currently with a price target of $11.97.

LYFT Price Action: Lyft stock was trading at $12.40 at the end of market day on Feb. 12.

Read Next: Uber, Lyft Can Hitch A Ride Higher If Q4 Earnings Beat Wall Street Estimates