Lyft Stock Tanks 13% After Weak Q4 Results and Grim Q1 Outlook
Ride-hailing company misses revenue estimates and warns of tough quarter ahead despite announcing $1B buyback.
Lyft just face-planted on Wall Street. The ride-hailing company posted Q4 revenue of $1.59 billion—up 3% year-over-year but way short of the $1.76 billion analysts expected.
The outlook isn't pretty either. Lyft's Q1 forecast for bookings and adjusted EBITDA came in below estimates, with management blaming severe winter storms for the weak guidance.
In classic damage-control fashion, Lyft simultaneously announced a $1 billion share buyback program. Investors weren't buying it—literally. LYFT shares cratered more than 13% in after-hours trading.
The results highlight Lyft's ongoing struggle to keep pace with rival Uber, which continues to dominate the U.S. ride-sharing market. Weather woes aside, Lyft needs to show it can deliver consistent growth to win back investor confidence.