Wall Street

Lyft Company Shares Collapse After Poor Guidance

Lyft stock plunges 30% due to guidance despite strong results

Lyft’s shares lost 29.9% of their value after investors expected the company’s business to be damaged in the near term, noting that the company announced better results than analysts’ expectations on all fronts during the first quarter.

But Lyft gave poor guidance for the second quarter and said it will have to keep spending on driver incentives as fuel prices rise, sending its shares tumbling, and it’s not entirely clear how the company plans to invest or continue to do better in the second half of the year, given that it is spending a lot of money. Also on the market and marketing techniques of its brand. Read More [Lyft Shares Are Flying After Third Quarter Results].

Analysts believe that the weak outlook in the near term, the need to increase investments and the difficult surrounding conditions will likely affect the performance of Lyft stock in the near term, which will push many investors to exit the stock.

However, some analysts pointed out that the selling drive after the company’s report was too excessive, and stated that although stocks were hit by revenue and disappointed expectations, the market demand as a whole is improving as more drivers become available.

This balance in the market will often lead to lower prices, larger work volumes and a return to growth in the company’s results and annual budget, which represents a dynamic structure that will support the stock out of the decline to the areas witnessed during the Covid epidemic.

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