NASDAQ: LYFT
Key Data Points
Lyft (LYFT 2.97%), a provider of ride-hailing services in the U.S. and Canada, closed at $13.99, down 16.97%. The stock fell after fourth-quarter results showed a revenue miss, weaker ride metrics, and a cautious outlook. Investors are watching whether management can restore confidence in its long-term profitability targets. Trading volume reached 73.1 million shares, about 398% above its three-month average of 14.7 million shares. Lyft IPO'd in 2019 and has fallen 82% since going public.
How the markets moved today
S&P 500 slipped 0.03% to 6,940, while the Nasdaq Composite eased 0.16% to finish at 23,066. Among ride-hailing services, Uber Technologies closed at $70.97 (-3.44%) and Grab finished at $4.23 (-1.86%) as investors reassessed growth and regulatory risks across the sector.
What this means for investors
Lyft reported Q4 earnings Tuesday afternoon and, despite delivering record profitability, saw its stock plummet today. Revenue of $1.59 billion fell well short of Wall Street’s $1.75 billion consensus; however, the bulk of the shortfall stemmed from a one-time $168 million legal, tax, and regulatory impact.
With active riders growing by 18% and management guiding for gross bookings to grow by 18% in Q1, Lyft did better than the market is giving it credit for, in my opinion. Management also stated that it should earn over $1 billion in free cash flow in 2027. Trading with a market cap of just $5.6 billion today, Lyft remains a discounted growth story alongside Uber, and I’ll happily keep buying shares of both stocks.
