Hey Guys,
Editor’s note: The stock ended up going down 36.44% on the day.
I really want to talk about Lyft today, which might be a penny stock soon enough if this Uber has eaten them narrative continues. LYFT 0.00%↑
It’s not just a big miss on Earnings, it’s that they have stopped growing. Lyft said it expects to make roughly $975 million in revenue in the fiscal first quarter of 2023, lower than the $1.09 billion analysts anticipated, according to StreetAccount.
The Net loss is just really bad here in comparison to Uber eating into their business. The ride hailing company's fourth quarter top line grew 21% year-over-year, to $1.18 billion, beating expectations of $1.16 billion. The company's adjusted net loss of $270.8 million widened from the same quarter's loss of $90.2 million a year ago.
I think Investors will start to panic, but there’s certainly still room for Lyft or it could get acquired by someone like Amazon.
Here's what the ride-hailing company reported, as compared to estimates compiled by Bloomberg:
Q4 revenue: $1.18 billion actual versus $1.16 billion expected
Q4 loss per share: -$1.61 actual versus 13 cents expected
Q4 active riders: 20.36 million actual versus 20.3 million expected
Q1 revenue guidance: $975 million actual versus $1.09 billion expected
Lyft is still Relatively Small
The rideshare company recorded 20.3 million active riders in the third quarter, effectively flat from the third quarter but up 8.7% year over year.
Just 20 million, that’s less than you might have expected. After all they were founded in 2012.
They raised $4.9 Billion before going public. Before the pre-market dive, they are worth $5.85 Billion.
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