Summary:
- What happened to Lyft's share price after their earnings announcements.
- Negative investor confidence as Lyft intends to spend more cash to attract drivers in Q2.
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Lyft announced Q1 earnings on Tuesday.
After Lyft announced their earnings during the trading day on Tuesday, since then the stock price fell almost 33% during intra-day trading on Wednesday. The company’s earnings mostly surpassed market expectations, with EPS a smaller than expected loss, revenue and EBITDA exceeded the market's expectations.
Q2 earnings fall short of analyst expectations.
Lyft revealed they were facing a driver shortage and announced they would increase spending in an attempt to attract more drivers to the service. This means that Q2 earnings forecast took a dive, falling short on analyst expectations.
Investors are worried whether the road Lyft's management is taking to attract new drivers will derail the company's path to profitability in the future.
We have seen over the past month that Lyft’s share price has been gradually falling, the major fall came after the earnings announcements and the company's future plans.
Lyft Share Price
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Source: Finance.yahoo.com, cnbc.com
