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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
First-quarter active ridership fell 4.8% from the previous quarter in the first three months of the year.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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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, …<\/p>\n","protected":false},"author":9,"featured_media":56024,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[39,36],"tags":[7113,6901,516],"class_list":["post-64767","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-global-stock-markets","category-market-updates","tag-earnings","tag-nasdaq","tag-sp-500"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/64767","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=64767"}],"version-history":[{"count":4,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/64767\/revisions"}],"predecessor-version":[{"id":64772,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/64767\/revisions\/64772"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/56024"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=64767"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=64767"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=64767"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}