Shares of Lyft Inc (NASDAQ: LYFT) are down more than 20% this morning even though the ride-hailing company reported market-beating results for its first financial quarter.
Lyft stock down on disappointing guidance
The tech stock is being punished for the guidance that came in shy of Street estimates. Lyft now expects $20 million to $30 million of adjusted EBITDA on up to $1.02 billion in revenue in its current quarter.
In comparison, analysts were at $51 million and $1.08 billion, respectively – that made Michael Morton – an SVB MoffettNathanson analyst reiterated his market-perform rating on the Lyft stock.
There’s no getting around it. The problems Lyft faces are challenging if not daunting: simultaneously reverse market-share losses while improving unit economics.
Are Lyft shares worth buying on the dip?
On the plus side, Lyft reported $51.17 in revenue per active rider that topped the consensus by 77 cents. It also increased its market share by 3.0% between February and mid-April.
The ride-sharing company ended the quarter with the highest number of drivers in three years, as per its earnings press release. Still, Morton added:
It remains to be seen if Lyft will be able to continue this progress and ultimately achieve consistent GAAP profitability.
His $8.0 price target suggests Lyft shares have still not bottomed and could lose another 5.0% from here. In late March, cofounder Logan Green stepped down as the CEO of Lyft Inc (read more).
Notable figures in Lyft’s Q1 earnings report
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Versus its year-to-date high, Lyft stock is down more than 50% at writing.
Source : https://invezz.com/news/2023/05/05/lyft-stock-outlook-after-q1-earnings/
