Lyft shares fall 30% on gloomy forecast based on gas prices


Shares of ride-hailing giant Lyft plunged 30% in intraday trading on Wednesday as investors expected short-term headwinds and soaring gasoline prices to weigh heavily on the company’s performance In the coming months.

As part of the company’s first-quarter earnings report, Lyft provided second-quarter guidance that disappointed Wall Street, noting it is expected to continue spending on driver incentives due to soaring prices gasoline. The gloomy outlook for the next quarter sent stocks tumbling, according to a CNBC News report.

Logan Green, co-founder and CEO of LyftAP Photo/Noah Berger, File)

AFP

(AFP)

It’s still unclear how much Lyft plans to spend, or whether the company will continue to spend in the second half, the report adds.

“We believe the weaker near-term outlook, the need for increased investment and numerous macro headwinds are likely to weigh on equities in the near term, forcing us to sideline,” the analysts said on Wednesday. Susquehanna analysts in a downgraded rating. the stock.

In September, Lyft joined 50 other companies in expressing support for the systemic killing of unborn children, signing a letter saying Texas pro-life legislation threatens the health and economic stability of their employees and customers. .

Earlier that month, the founder and chairman of the ride-sharing company donated $1 million to America’s largest abortion provider.

Lyft, along with Uber, also announced that they would cover the legal costs of drivers sued under Texas law banning abortions once a fetal heartbeat is detected.

In 2020, after the death of George Floyd, Lyft executives told customers in an email to be “part of the solution” to “systemic racism” in the United States. The company had also announced that it would provide $500,000 in free rides to civil rights organizations providing transport for protest demonstrations.

You can follow Alana Mastrangelo on Facebook and Twitter at @ARmastrangeloand on Instagram.




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