Lyft stock melts down after earnings 'debacle for the ages'

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Lyft isn't getting too many stars for its latest earnings report, which showed the challenges of competing against Uber

Lyft Inc. isn’t getting too many stars for its latest earnings report, which is helping to send shares down more than 30% Friday morning as numerous bulls head for the hills and fret about the company’s struggles to compete against rival Uber Technologies Inc.

In addition, Chief Executive Logan Green said that Lyft’s LYFT work to “prioritize competitive service levels” will impact its prior 2024 targets for free-cash flow and adjusted Ebitda. He added that “Lyft’s business model faces an Everest-like uphill climb to show growth while profitable in a stark contrast to big brother Uber which is moving in the opposite direction of balanced fundamentals.”

D.A. Davidson’s Tom White commented that Lyft seems to be struggling to find its footing as pandemic conditions subside. While Lyft’s management “indicated it will look to offset these investments in lower prices via further cost/expense cuts,” White said, “it remains to be seen how LYFT’s ability to compete/innovate may be impacted by such moves.”

 

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