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Lyft Shares Drop as Price Cuts Persist Amid Ongoing Competition with Uber

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Lyft (LYFT.O) shares fell 9% on Wednesday after the company announced that pricing trends from late 2024 are likely to continue in 2025, driven by its efforts to stay competitive with rival Uber. Lyft has been cutting fares and offering more discounts to attract riders and drivers.

During its fourth-quarter report on Tuesday, Lyft revealed that fares fell late last year and have remained low in early 2025. In contrast, Uber stated last week that it expects slight price increases for its UberX service this year as it passes rising insurance costs on to consumers.

Lyft has been using coupons and fare reductions to retain market share. However, Bernstein analysts highlighted that U.S. rideshare companies are reallocating incentives, reducing driver incentives to fund customer promotions—a strategy that could work if properly balanced.

Lyft emphasized that it has flexibility in adjusting incentives to ensure marketplace balance, with a strong driver base currently on its platform. However, analysts at Needham cautioned that extended price cuts could test the industry’s price elasticity and overall demand.

Following Lyft’s fourth-quarter results, at least 13 brokerages lowered their price targets for the company, with a median target of $18, according to LSEG data. The company also projected gross bookings below Wall Street estimates, mirroring Uber’s recent guidance.

Lyft’s forward 12-month price-to-earnings ratio stands at 13.4, compared to Uber’s 29.4. While Lyft’s shares fell 13.9% in 2024, they have risen 11.6% so far this year. However, if the current share decline holds, Lyft’s market capitalization is expected to drop by over $500 million to around $5.4 billion. Uber’s shares were also down about 3% on Wednesday.

South Korean Prosecutors to Appeal Ruling in Samsung Chief’s Case

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South Korean prosecutors have announced plans to appeal to the Supreme Court following an appeals court’s ruling that found Samsung Electronics Chairman Jay Y. Lee not guilty of charges related to a 2015 merger. The case revolves around an $8 billion merger between two Samsung affiliates, which prosecutors argued was designed to solidify Lee’s control over the tech giant. However, the Seoul High Court ruled on February 3 that all charges should be dismissed, stating that the merger did not cause financial harm to minority shareholders.

Lee, who has long been entangled in legal challenges, including those stemming from this merger, denied any wrongdoing, asserting that he never intended to deceive investors for personal gain. The decision follows a history of legal troubles for Lee, including his 18-month imprisonment on bribery charges in connection with a scandal that led to the 2017 impeachment of then-President Park Geun-hye.

Despite the favorable ruling, Lee continues to face ongoing legal risks as Samsung deals with increasing competition and sluggish stock performance. Samsung has declined to comment on the recent developments.

MediaTek Prepares for Potential US Tariffs Amid Uncertainty

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MediaTek, Taiwan’s leading chip design firm, has been running simulations in anticipation of potential U.S. tariffs on Taiwanese goods, according to CEO Rick Tsai. Despite the uncertainty surrounding this issue, Tsai expressed confidence that the impact would be “manageable” in 2025.

Taiwan’s tech industry, including giants like TSMC, faces the risk of tariffs as U.S. President Donald Trump has proposed such measures to incentivize semiconductor production within the United States. On the campaign trail, Trump criticized Taiwan for allegedly taking U.S. semiconductor business.

Trump has outlined plans to impose tariffs on imported chips, as well as other products such as pharmaceuticals and steel, though no specific timeline has been set. When asked about the potential effects on MediaTek, Tsai referred to the situation as “very unpredictable,” but assured that the company is taking proactive measures, such as simulations, to prepare for the possible changes.

Although Tsai acknowledged the unpredictability of the situation, he believes the impact of any tariffs in the short term will be manageable, especially for 2025. “There are so many variables, so it’s very difficult to give an accurate estimate now,” he said.

In addition to trade concerns, MediaTek is facing pressure from the rise of DeepSeek, a Chinese AI startup whose lower-cost models are posing a challenge to Western tech investments in chipmakers and data centers. Despite this, Tsai remains optimistic about the AI market, noting that the spread of AI will benefit average users.

MediaTek’s shares have outperformed the broader market in 2025, showing a 7.8% gain so far, while the overall market has gained only 1.9%. However, the company’s shares closed flat on Friday.