Noor Trends News, Technical Analysis, Educational Tools and Recommendations
lyft Inc stock plunged 26% on Tuesday after the ride hail company said it would have to spend more heavily to attract drivers and forecast operating earnings less than a quarter of Wall Street targets, reflecting the added costs.
A full recovery of driver supply from pandemic lows was taking longer than Lyft had hoped, President John Zimmer said in an interview with Reuters.
The quarterly report also spooked investors in rival Uber Technologies Inc, which fell 11% in after hours trade following Lyft’s report. Uber recouped some losses to a drop of 4% after it moved up its own quarterly results publication plan to Wednesday morning from Wednesday afternoon.
The share slump in after-hours trade wiped about $2.8 billion off Lyft’s market value. The stock was already trading down about 60% from its IPO in 2019.
Lyft also forecast second-quarter revenue of $950 million to $1 billion, shy of the average analyst estimate of $1.02 billion, according to IBES data from Refinitiv.
First-quarter active ridership fell 4.8% from the previous quarter in the first three months of the year.
Active riders were 17.8 million, down from 18.7 million in the previous quarter and up from 13.5 million a year earlier. Ridership is typically lower in the first quarter with demand for ride-hail, bike and scooter trips declining during the colder months.
