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Lyft shares plunge after weaker-than-expected guidance

The Yahoo Finance Live team discusses a sharp decline in Lyft stock over concerns about the company's turnaround strategy.

Video transcript

SEANA SMITH: Let's round it out with Lyft because Lyft shares selling off today. The ride-sharing company posted a [? B ?] for its first quarter, but it was all about the forecast. The sales forecast coming in lower than what the Street was looking, looking at a loss of nearly 20%.

Now, certainly, Lyft has been struggling for quite some time to win back some of that market share that it has lost to Uber. The new CEO, David Risher, faces a number of challenges, Akiko, as he tries to turn around this company, tries to really get more riders on the platform. We know that ridership number, just above 19 million, still remains below of what the company had pre-pandemic.

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AKIKO FUJITA: Yeah, and the market's just not convinced that this turnaround strategy for Lyft, in fact, will work. I mean, you pointed to it. Your earnings results are often backwards looking, but if you think about where they were in Q1, this was a really tough quarter for the company. A new president and CEO laid off 26% of its staff, and then, of course, it's still struggling when it [INAUDIBLE] comes to ridership with drivers, when you compare it to its rival, Uber.

And that's been the biggest challenge for Lyft, as they really have over the years doubled down on ride hailing instead of diversifying their business. That's really come to show in their results there. Market's certainly not very happy with the numbers that we got, with Lyft down 20% roughly on the day.