Connect with us

Hi, what are you looking for?


Lyft stock tanks 30% on weak guidance: buy on the sell-off?

buy lyft stock on post-earnings weakness

Shares of Lyft Inc (NASDAQ: LYFT) crashed over 30% in extended trading on Thursday after the ride-hailing company cited “seasonality” and issued weak guidance for its current financial quarter.

Is it a suitable time to invest in Lyft stock?

Lyft expects $975 million in revenue on $5.0 million to $15 million of adjusted EBITDA, as per the earnings press release. In comparison, analysts had forecast $1.09 billion and $81 million, respectively.

But that isn’t enough to make Wedbush Securities’ Dan Ives lose conviction in the Lyft stock. Sticking to his $17 price target on CNBC’s “Closing Bell: Overtime”, he said:

Lyft continues to be the little brother to Uber. We’re seeing massive recovery in drivers that’s been a big issue from a supply perspective. We’re still confident on the overall opportunity in ride share.

Ives did caution, though, that the company has to improve its EBITDA in the back half of the year. If not, the “story will change”. Earlier this week, peer Uber Technologies Inc reported progress in terms of profitability (source).

Notable figures in Lyft’s Q4 earnings report

  • Lost $588.1 million versus the year-ago $283.2 million
  • Per-share loss also climbed from 83 cents to $1.61
  • Adjusted loss printed at 74 cents on a per-share basis
  • Revenue jumped 21% year-over-year to $1.18 billion
  • Consensus was 13 cents EPS on $1.15 billion in revenue
  • Adjusted EBITDA of $126.7 million was well above estimates

Active riders increased in the recent quarter to 20.4 million – slightly above estimates. Revenue per active rider of $57.72 also topped expectations by just over $1.0. Including the after-hours price action, Lyft stock has now returned to the level at which is started the year 2023.

The post Lyft stock tanks 30% on weak guidance: buy on the sell-off? appeared first on Invezz.

You May Also Like


Inflation appears to be on the decline. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew...


Mimiq, Inc is announcing today the launch of their new product, Mimiq Track, at CES as part of their latest product line to operate...


On this week’s edition of Stock Talk with Joe Rabil, Joe looks at the longer-term picture for stocks like AAPL, TSLA, and more. He...

Latest News

Kevin McCarthy’s difficult road to becoming House speaker ended early Saturday morning after Republicans appeared to have miscounted the number of votes they needed...

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023