Lyft Results Beat Expectations. Here’s Why the Stock Is Falling

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Lyft Results Beat Expectations. Here’s Why the Stock Is Falling

Barron's2021-08-04

(Aug 4) Lyftstock tumbled Wednesday despite itsbetter-than-expected June quarter results, as investors focused instead on disappointment with the third-quarter outlook and the company’s increasing ...

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mebugsbunny
·2021-08-04
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Yc3
·2021-08-04
Like pls
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- Jackyjw:
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  2021-08-04
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sheenayam
·2021-08-04
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NPC69
·2021-08-04
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Here’s Why the Stock Is Falling\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-08-04 22:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/articles/lyft-uber-stock-earnings-51628090550?mod=mw_latestnews><strong>Barron's</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>(Aug 4) Lyftstock tumbled Wednesday despite itsbetter-than-expected June quarter results, as investors focused instead on disappointment with the third-quarter outlook and the company’s increasing ...</p>\n\n<a href=\"https://www.marketwatch.com/articles/lyft-uber-stock-earnings-51628090550?mod=mw_latestnews\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LYFT","symbol_name":"Lyft, Inc.","start_time":0,"source_url":"https://www.marketwatch.com/articles/lyft-uber-stock-earnings-51628090550?mod=mw_latestnews","article_id":"1103174591","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1103174591","pubTimestamp":1628085634,"sourceInfo":{"source_id":"lsy1610680873436","name":"Barron's"},"weMediaInfo":null,"summary":"(Aug 4) Lyftstock tumbled Wednesday despite itsbetter-than-expected June quarter results, as investo","collect":0,"end_time":0,"defaultTopTitle":"marketwatch.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LYFT":"Lyft, Inc."},"translate_title":"Lyft的结果超出了预期。这就是股票下跌的原因","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"LYFT":0.9},"content_text":"(Aug 4) Lyftstock tumbled Wednesday despite itsbetter-than-expected June quarter results, as investors focused instead on disappointment with the third-quarter outlook and the company’s increasing costs for driver incentives.\nIn late trading Tuesday, Lyft shares rallied after the ride-sharing company disclosed that it reached profitability one quarter sooner than expected—as measured by adjusted Ebitda, or earnings before interest, taxes, depreciation, and amortization.\nBut on Wednesday, the stock dived 8.6% to $50.59.Uber Technologies(UBER), which reports results after the close on Wednesday, fell down 2.6% to $41.68.\nLyft (ticker: LYFT) posted second-quarter revenue of $765 million, up 125% from a year ago, and well ahead of the Street consensus at $696 million. Profit based on adjusted Ebitda (earnings before interest, taxes, depreciation and amortization) was $23.8 million, including about $16 million in one-time gains.\nActive riders (people who took at least one ride in the period) reached 17.1 million, up 97% from a year ago, and up 27% from the March quarter. Revenue per active rider was $44.63, up 14% from a year ago, but down slightly from $45.13 in the March quarter.\nOne reason for the pressure on the stock is rapid growth in Lyft’s incentive payments to drivers as a way to boost supply.On last night’s earnings conference call with the Street, Lyft said it paid more than $375 million in driver incentives in the quarter, up 92% from the March quarter. That is classified as “contra-revenue,” reducing the top line. 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As Mollins notes, the company said it would invest any incremental revenue dollars above guidance into driver supply programs.\nNeedham analyst Bernie McTernan was one of several analysts who suggested that driver supply could get a boost in early September as supplemental unemployment benefits come to an end. Meanwhile, he notes, “there is still a driver supply imbalance,” with Lyft taking on the burden of investing in both sides of the market—boosting driver pay while holding the line on ride pricing. McTernan keeps his Hold rating on the stock, and finds that there are “more compelling growth opportunities elsewhere in the U.S. mobility market,” an obvious reference to Uber.\nMKM Partners analyst Rohit Kulkarni makes a similar point: Lyft has become “an increasingly attractive and tactical play on mass vaccinations and summer travel,” but he prefers Uber. The latter offers both lower valuation and a more diversified bet, with a broader international exposure as well as a food delivery arm, he writes. Making the same point, Atlantic Equities analyst James Cordwell says while results and guidance topped expectations, he’s keeping a Neutral rating on Lyft shares, “given the richer valuation versus Uber.”\nEvercore ISI analyst Mark Mahaney, however, away from the results incrementally more positive, repeating his Outperform rating, while adjusting his price target to $76 from $77. But he also notes that challenges remain, with ride availability, wait times, and ride pricing still not optimal.\n“Lyft will have to lean aggressively into driver incentives for another quarter or two to rebalance the marketplace,” until vaccines more fully roll out, reopenings unfold, and demand normalizes for work and school commutes and airport trips, he writes. But he adds: “Lyft is proving it can do this while breaking through to sustained Ebitda profitability.”","kind":"news","is_publish_news":false,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":890113967,"gmtCreate":1628086511259,"gmtModify":1703501000965,"author":{"id":"3582002742425523","authorId":"3582002742425523","name":"mebugsbunny","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3582002742425523","authorIdStr":"3582002742425523"},"htmlText":"Like. And comment","listText":"Like. And comment","text":"Like. 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