Following the release of the ride-hailing company’s fourth-quarter earnings, Lyft’s (NASDAQ: LYFT) stock price decreased by more than 36% today. Investors apparently didn’t take the results too well, as evidenced by the price movement.
Lyft’s Q4 revenue of $1.18 billion was above analyst expectations of $1.16 billion. Additionally, adjusted profits per share (EPS) came in at 29 cents compared to the forecast of 13 cents. The GAAP net loss, on the other hand, totaled $588.1 million, or a loss of $1.61 per share. The loss was attributed by the corporation to stock-based compensation and associated tax costs, totaling $201.3 million. The business revealed a GAAP net loss of $283.2 million a year ago.
For the time period, revenue and adjusted EPS exceeded expectations. The outlook for Q1 was, however, much different. Lyft predicted revenue of $975 million, less than the $1.09 billion analysts predicted. Elaine Paul, CFO, explained that the seasonality, timing of insurance renewals, and reduced fares were to blame for the negative guidance.
The findings didn’t particularly impress analysts. Dan Ives, a Wedbush analyst, stated the following:
We have listened to thousands of conference calls with various highs and lows during the course of my 22 years working as a tech analyst on Wall Street. The Lyft call from last night was among the three worst calls we’ve ever received.
Following the release of earnings, several analysts either cut their price targets or dropped their ratings for the LYFT stock. Canaccord reported cutting its price goal to $22 per share, while Cowen reported lowering its price target to $11.
5 Institutions Making Huge Bets on LYFT Stock
Monitoring institutional ownership is crucial since these substantial investors support and provide liquidity for stocks. In the third quarter, 421 13F filers reported owning LYFT shares, which is a decrease of 33 filings from the second quarter. These filers now possess 286.91 million shares in total, up from 270.06 million shares during the previous quarter. The institutional put/call ratio, which was previously 0.90, is currently 0.68. That indicates a bullish options stance because it is equivalent to 24.31 million puts and 35.56 million calls.
In light of this, let’s examine Lyft’s largest shareholders:
52.84 million shares, FMR. During Q4, FMR bought 1.24 million shares.
Shares of Rakuten Group (OTCMKTS: RKUNY) total 31.40 million. Throughout Q4, Rakuten’s position remained constant.
29.20 million shares of Vanguard. In the fourth quarter, Vanguard bought 2.90 million shares.
Shares of BlackRock (NYSE: BLK) total 17.89 million. In the third quarter, BlackRock bought 458,583 shares.
Shares of Fisher Asset Management total 10.98 million. During Q4, Fisher sold 735,426 shares.
Frequently asked question
1. Why are trading houses betting on Lyft (LYFT) stock?
— Trading houses may be betting on Lyft (LYFT) stock for various reasons, such as a belief in the growth potential of the company, a favorable outlook on the ride-sharing industry, or the anticipation of future financial performance.
2. Is investing in Lyft (LYFT) stock a good idea?
–Whether investing in Lyft (LYFT) stock is a good idea depends on an individual’s investment goals, risk tolerance, and financial situation. It is important to conduct thorough research and consult with a financial advisor before making any investment decisions.
3. What are the risks of investing in Lyft (LYFT) stock?
— Like any investment, investing in Lyft (LYFT) stock carries risks. Some of the key risks include fluctuations in the stock market, changes in the ride-sharing industry, and the company’s ability to compete effectively in a highly competitive market.
4. What is the current stock price of Lyft (LYFT)?
–The current stock price of Lyft (LYFT) can vary depending on the time and day you are asking. It is best to check a financial news website or a stock market tracking website for the most up-to-date information.