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Earnings Preview: Lyft Inc. (NASDAQ: LYFT)
By: 24/7 Wall St. | November 4, 2022
• Here is a preview of two companies set to report quarterly results later on Monday.
Lyft
Ride-hailing operator Lyft Inc. (NASDAQ: LYFT) got a lift of more than 10% after rival Uber issued strong guidance for the current quarter earlier this week. The gain was pared to around 3.5% by the end of the day, however. On Thursday, the company announced that it would fire about 13% of its total workforce of around 5,000 employees, citing an increased risk of recession and rising insurance costs. Shares have fallen by nearly 9.5% in the past three days.
The 43 analysts covering the stock come down on Lyft’s side, with 24 having a Buy or Strong Buy rating and another 18 rating the shares at Hold. At a share price of around $13.70, the upside potential based on a median price target of $25.00 is 82.5%. At the high target of $65.00, the upside potential is nearly 375%.
Third-quarter revenue is forecast at $1.06 billion, up 7.2% sequentially and by 22.6% year over year. The company is expected to report EPS of $0.08, down nearly 41% sequentially and up three cents year over year. For the full 2022 fiscal year, analysts anticipate EPS of $0.41, solidly better than last year’s loss per share of $0.25, on sales of $4.08 billion, up 27.3%.
Lyft stock trades at 33.2 times expected 2022 EPS, 13.2 times estimated 2023 EPS of $1.03 and 8.4 times estimated 2024 earnings of $1.63 per share. The stock’s 52-week range is $10.82 to $57.68. Lyft does not pay a dividend. Total shareholder return for the past 12 months was negative 72.1%.
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Lyft hikes service fee for rides as insurance costs rise
By: Investing.com | October 17, 2022
(Reuters) - Lyft Inc (NASDAQ:LYFT) is increasing the service fee its U.S. riders pay directly to the company to cover higher insurance costs, the ride-hailing firm said.
The increase averages less than 50 cents per trip nationally, a Lyft spokesperson said. The company pays for drivers' insurance when they are working on its platform.
"Lyft is facing insurance inflation pressures and we've nominally increased service fees to help offset these costs," the spokesperson said in an emailed statement.
New data from YipitData showed Lyft increased its published service fee for rides in virtually all U.S. markets in the first week of October, including around 150 markets expect for New York.
The service fee went up by an average of about 60 cents, implying a 3% increase in the cost of an average ride, and an 18% increase in the service fee, according to YipitData.
Graphic: Lyft's service fee spikes in October - https://graphics.reuters.com/LYFT-FARES/akvezdkkrpr/chart.png
The service fee, which goes directly to Lyft, is an additional fee added on a per-ride basis that covers certain operating costs and safety measures such as insurance and background checks.
Lyft added a 55-cent surcharge earlier this year that went directly to the driver to help drivers deal with the higher gas prices that have been eating into their earnings. The program was stopped in late September.
Lyft now offers up to 7% cash back when drivers pay for gas with Lyft Direct debit card.
"The price the consumer pays shouldn't change very much on the basis of these two changes, but it might change the amount Lyft takes as revenue versus the amount the driver takes," YipitData analysts said.
"Since the fuel surcharge went directly to drivers and the service fee goes directly to Lyft, it suggests that Lyft would take more of each fare, assuming no changes to the other fare components."
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Lyft Sees Unusually High Options Volume
By: MarketBeat | October 11, 2022
• Lyft, Inc. (NASDAQ:LYFT - Get Rating) saw unusually large options trading activity on Tuesday. Traders bought 72,124 call options on the company. This represents an increase of 44% compared to the typical volume of 49,938 call options...
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Lyft testing new pay algorithm to lure drivers
By: Nivedita Balu | October 11, 2022
(Reuters) - Ride-hailing firm Lyft Inc (NASDAQ:LYFT) said on Tuesday it was testing an earnings algorithm that will allow drivers in 18 U.S. cities to see destination and pay details before accepting a request.
The test follows a similar move by bigger rival Uber Technologies (NYSE:UBER) Inc and underlines how the companies are going the extra mile to fix driver shortages to take advantage of a demand surge brought on by a return to office and travel since the pandemic.
Lyft drivers will have access to details such as drop-off locations, estimated distance and time, as well as fare details before accepting a ride. The company plans to expand this service to more cities through 2022.
It is also investing to test filters that will allow drivers to set a preferred driving radius and give them the option to choose their rider.
Drivers for ride-hailing firms have been struggling with higher fuel and maintenance costs and have long demanded the access to such details.
"We'll also design Upfront Pay over time to include bonuses and incentives," Lyft President John Zimmer said.
Meanwhile, Uber's upfront pay system has drawn criticism from drivers.
California-based driver Jude Wolfe says Uber is taking a bigger percentage of drivers' earnings, prompting more to quit and forcing others to travel long distances for pick ups when gas prices are already high.
"A lot of this problem can be alleviated, if we did not have the demand on us to accept the last five out of 10 rides in order to keep our upfront details," she said in a campaign demanding fair share from Uber.
Looking to launch upfront pay "without limitations", Lyft said a survey of over 1,000 drivers showed more than 70% preferred the upfront pay model to the previous pay models.
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Another Analyst Picks Uber Over Lyft
By: Schaeffer's Investment Research | October 7, 2022
• RBC downgraded Lyft stock to "underperform"
• LYFT is down 74% in 2022
RBC today downgraded LYFT Inc (NYSE:LYFT) to "sector perform" from "outperform", while cutting its price target nearly in half from $30 to $16. The analyst is less bullish following a driver supply analysis, and noted that ridesharing competitor Uber (UBER) has more "structural advantages" over Lyft. Out of the gate this morning LYFT is 6% lower to trade at $13.11.
This is LYFT's second downgrade in as many weeks. On Sept. 26, UBS downgraded the stock after a survey showed drivers and consumers preferred Uber. Despite today's drop, LYFT is heading for its first weekly win since Sept. 9. Year-to-date, LYFT is 74% lower, with the shares' 80-day moving average containing a rally last month.
Options traders have ramped up there bearish positions since our last coverage, too. Lyft stock's 10-day put/call volume ratio of 2.45 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) now ranks in the 99th percentile of annual readings. For context, that ratio was 1.02 on Sept. 26.
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Lyft Downgraded at RBC on 'Structural Headwinds,' PT Slashed by Nearly 50%
By: Investing.com | October 7, 2022
Shares of Lyft (NASDAQ:LYFT) are down 4.5% today after RBC analysts downgraded to Sector Perform from Outperform, citing “structural headwinds.”
Their two key factors behind the downgrade and much lower PT are concerns about driver supply and margin targets limiting the company’s ability to regain market share “beyond geographic reversion.”
First, the U.S. driver supply analysis yielded incrementally negative results. In this aspect, the analysts highlighted four particular headwinds:
1. Directionally worse pick-up times for LYFT reinforcing the view of Uber's (NYSE:UBER) structural supply advantage,
2. UBER seeing shorter pick-up times for the first time since May '21 could be incremental conversion headwind for LYFT,
3. UBER's cheaper price getting cheaper vs. LYFT also adds to potential conversion headwinds (albeit small) and
4. LA remains the potential canary in the coal mine given LYFT's outsized west coast exposure and UBER continuing to outperform on supply improvements in LA.
Second, the fact that Lyft’s management committed to working towards profitability could be an issue amid the rising competitive intensity.
“3p data and the company's revenue volumes continue to suggest at least some marginal share loss, we'd expect the multiple to be flat to down from current levels in spite of its already somewhat anemic levels,” the analysts wrote in a client note.
They also slashed the price target to $16 per share, from the prior $30.
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Ride-hailing firm Lyft slams brakes on U.S. hiring as recession fears mount
By: Reuters | September 27, 2022
• Lyft Inc is freezing all hiring in the United States through the end of the year, a company spokesperson said on Tuesday, making the ride-hailing firm the latest to pause recruitment as high inflation forces cost-cutting measures.
(Reuters) -Lyft Inc is freezing all hiring in the United States through the end of the year, a company spokesperson said on Tuesday, making the ride-hailing firm the latest to pause recruitment as high inflation forces cost-cutting measures.
The company, which in July cut nearly 60 jobs in its rental division, has been battling surging expenses as U.S. inflation reaches levels not seen in four decades. As of June 30, Lyft had nearly 5,000 employees, according to its latest quarterly filing with the Securities and Exchange Commission.
San Francisco, California-based Lyft said its costs jumped 36% in its most recent quarter.
Several tech companies have been forced to slash headcount in recent months, with Lyft’s larger rival Uber Technologies Inc also scaling back hiring and cutting marketing spend.
Lyft posted a record quarter in August on the back of soaring demand for rides and gains from its cost-cutting efforts.
However, the company warned challenges would persist in the third quarter due to high insurance costs, macroeconomic uncertainty and inflation.
A broad sell-off in markets due to red-hot inflation and fears of a looming recession have crushed risky assets this year. As of Tuesday’s close, Lyft’s stock has dropped over 68% in 2022.
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Lyft Inc. (LYFT) Up big this week on "Take out Rumor" Who ever started it we saw massive call buying just before it broke
By: Options Mike | September 10, 2022
• $LYFT Up big this week on "Take out Rumor" Who ever started it we saw massive call buying just before it broke.
$UBER not buying them, not sure who would $GRUB ??? $DASH ????
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Stock Traders Purchase High Volume of Call Options on Lyft
By: MarketBeat | September 8, 2022
• Lyft, Inc. (NASDAQ:LYFT - Get Rating) was the recipient of unusually large options trading on Thursday. Traders acquired 96,312 call options on the company. This represents an increase of approximately 79% compared to the average volume of 53,945 call options...
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Lyft, Inc. (LYFT) Given Average Rating of "Moderate Buy" by Brokerages
By: MarketBeat | September 3, 2022
• Shares of Lyft, Inc. (NASDAQ:LYFT - Get Rating) have earned a consensus rating of "Moderate Buy" from the thirty-one brokerages that are presently covering the stock, Marketbeat reports. Five equities research analysts have rated the stock with a hold recommendation and fifteen have issued a buy recommendation on the company. The average twelve-month price target among brokerages that have issued ratings on the stock in the last year is $36.93...
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Lyft Inc. (LYFT) Possibly nice short through it if market rolls over
By: Options Mike | August 28, 2022
• $LYFT another name at it's earnings gap, possibly nice short through it if market rolls over.
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Tigress Financial Lowers Lyft (LYFT) Price Target to $60.00
By: MarketBeat | August 12, 2022
• Lyft (NASDAQ:LYFT - Get Rating) had its target price lowered by stock analysts at Tigress Financial from $82.00 to $60.00 in a research report issued to clients and investors on Friday, Benzinga reports. The brokerage currently has a "buy" rating on the ride-sharing company's stock. Tigress Financial's target price would indicate a potential upside of 218.98% from the company's previous close...
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Kristin Sverchek Sells 13,000 Shares of Lyft, Inc. (LYFT) Stock
By: MarketBeat | August 12, 2022
• Lyft, Inc. (NASDAQ:LYFT - Get Rating) insider Kristin Sverchek sold 13,000 shares of the stock in a transaction dated Tuesday, August 9th. The shares were sold at an average price of $18.98, for a total transaction of $246,740.00. Following the transaction, the insider now owns 70,350 shares of the company's stock, valued at approximately $1,335,243. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website...
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Lyft Inc. (LYFT) Consolidating earnings move, holding the 8D so far..
By: Options Mike | August 14, 2022
• $LYFT Consolidating earnings move, holding the 8D so far..
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Lyft (LYFT) Stock’s Recent Bounce Could be Short-Lived
By: Schaeffer's Investment Research | August 11, 2022
• The rideshare concern just ran into a historically bearish trendline on the charts
• The equity is fresh off an all-time low
Rideshare concern Lyft Inc (NASDAQ:LYFT) is underperforming on the charts, sporting a nearly 55% year-to-date deficit. Following a massive post-earnings bear gap in May, the shares hit an all-time low of $11.93 on July 13. And though the company’s most recent earnings report has helped LYFT cover some lost ground, a study from Schaeffer’s Senior Quantitative Analyst Rocky White shows the stock just ran into a trendline that has been a bearish indicator in the past.
According to White’s study, LYFT is within one standard deviation of its 80-day moving average for the sixth time in the last three years. After the last five signals, the equity was lower one month later 80% of the time, averaging a 10.5% loss for that period. A comparable move from the stock’s current perch of $19.32 would place it just above the $17 mark.
Of the 25 analysts in coverage, 15 carry a “strong buy” rating on Lyft stock, while 10 say “hold.” Meanwhile, the 12-month consensus price target of $33.87 is a whopping 74% premium to current levels, leaving plenty of room for price-target cuts and/or downgrades in the future.
An unwinding of optimism amongst short-term options traders could also have bearish implications. This is per LYFT's Schaeffer's put/call open interest ratio (SOIR) of 0.67 that ranks higher than just 17% of readings in its annual range, which implies these traders are operating with a call-bias.
Meanwhile, Lyft stock is sporting relatively cheap options at the moment. This is per the equity’s Schaeffer’s Volatility Index (SVI) of 67%, which ranks in the relatively low 33rd percentile of readings from the past year.
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Lyft Inc. (LYFT) Nice move off earnings gap next resistance...
By: Options Mike | August 7, 2022
• $LYFT Nice move off earnings gap next resistance...
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Lyft Beats Expectations By $0.18 EPS
By: MarketBeat | August 6, 2022
• Lyft (NASDAQ:LYFT - Get Rating) issued its quarterly earnings data on Thursday. The ride-sharing company reported $0.13 earnings per share for the quarter, topping analysts' consensus estimates of ($0.05) by $0.18, Briefing.com reports. Lyft had a negative net margin of 24.44% and a negative return on equity of 43.21%. The business had revenue of $990.70 million during the quarter, compared to analysts' expectations of $988.14 million. During the same period in the previous year, the company earned ($0.68) earnings per share. Lyft's revenue for the quarter was up 29.5% on a year-over-year basis...
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Lyft (LYFT) Given New $25.00 Price Target at DA Davidson
By: MarketBeat | August 5, 2022
• Lyft (NASDAQ:LYFT - Get Rating) had its price objective decreased by stock analysts at DA Davidson from $27.00 to $25.00 in a note issued to investors on Friday, Benzinga reports. The brokerage presently has a "buy" rating on the ride-sharing company's stock. DA Davidson's price target would indicate a potential upside of 25.44% from the company's previous close...
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Lyft (LYFT) Scheduled to Post Earnings on Thursday
By: MarketBeat | July 28, 2022
• Lyft (NASDAQ:LYFT - Get Rating) is set to release its earnings data after the market closes on Thursday, August 4th. Analysts expect Lyft to post earnings of ($0.05) per share for the quarter. Persons that wish to register for the company's earnings conference call can do so using this link...
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Lyft (LYFT) Price Target Cut to $20.00
By: MarketBeat | July 19, 2022
• Lyft (NASDAQ:LYFT - Get Rating) had its target price dropped by equities research analysts at BTIG Research from $60.00 to $20.00 in a research report issued to clients and investors on Tuesday, The Fly reports. BTIG Research's target price indicates a potential upside of 49.14% from the stock's current price...
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Lyft, Inc. (LYFT) Receives Average Rating of "Moderate Buy" from Brokerages
By: MarketBeat | July 15, 2022
• Lyft, Inc. (NASDAQ:LYFT - Get Rating) has been assigned a consensus rating of "Moderate Buy" from the thirty research firms that are covering the company, Marketbeat.com reports. Six investment analysts have rated the stock with a hold recommendation and eleven have issued a buy recommendation on the company. The average 12 month price objective among analysts that have updated their coverage on the stock in the last year is $43.11...
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$LYFT definition of a weak company.. can't pop when market pushes ..
By: Options Mike | July 9, 2022
• $LYFT definition of a weak company.. can't pop when market pushes .. 8D resistance all week.
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Lyft (LYFT) Sets New 52-Week Low Following Analyst Downgrade
By: MarketBeat | June 30, 2022
• Lyft, Inc. (NASDAQ:LYFT - Get Rating) reached a new 52-week low during trading on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $56.00 to $37.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Lyft traded as low as $13.17 and last traded at $13.23, with a volume of 96795 shares trading hands. The stock had previously closed at $14.03...
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Lyft's (LYFT) Outperform Rating Reaffirmed at Wedbush
By: MarketBeat | June 28, 2022
• Lyft (NASDAQ:LYFT - Get Rating)'s stock had its "outperform" rating reaffirmed by stock analysts at Wedbush in a report issued on Wednesday, Benzinga reports. They presently have a $32.00 price target on the ride-sharing company's stock. Wedbush's price target would indicate a potential upside of 119.03% from the company's current price...
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Lyft reaches $25 million settlement over claims it hid safety problems
By: Reuters | June 16, 2022
Lyft Inc has reached a $25 million settlement to resolve shareholder claims that the ride-hailing company concealed safety problems, including alleged sexual assaults by drivers, prior to its 2019 initial public offering.
The preliminary settlement was filed on Thursday with the federal court in Oakland, California, and requires approval by U.S. District Judge Haywood Gilliam Jr.
Lyft (NASDAQ:LYFT) denied wrongdoing in agreeing to settle.
The San Francisco-based company became the first ride-hailing business to go public when it raised $2.34 billion in its March 2019 IPO.
Investors who bought shares in the IPO sued less than two months later, accusing Lyft of concealing safety problems from its registration statement in a bid to appear more socially responsible than its main rival, Uber Technologies (NYSE:UBER) Inc.
Lyft's share price fell below the $72 IPO price less than two weeks after trading began on March 29, 2019, and never recovered.
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The Goldman Sachs Group Cuts Lyft (LYFT) Price Target to $24.00
By: MarketBeat | June 9, 2022
• Lyft (NASDAQ:LYFT - Get Rating) had its price target dropped by stock analysts at The Goldman Sachs Group from $36.00 to $24.00 in a research report issued on Thursday, The Fly reports. The Goldman Sachs Group's price target indicates a potential upside of 41.68% from the company's current price...
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$LYFT tough sector, no bounce on this one yet. 16 area support for now
By: Options Mike | May 30, 2022
• $LYFT tough sector, no bounce on this one yet. 16 area support for now.
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Lyft (LYFT) Price Target Cut to $41.00 by Analysts at Argus
By: MarketBeat | May 16, 2022
• Lyft (NASDAQ:LYFT - Get Rating) had its price target lowered by analysts at Argus from $72.00 to $41.00 in a report released on Monday, The Fly reports. Argus' target price would indicate a potential upside of 105.00% from the stock's current price...
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$LYFT Lyft IPO was at $87.24 per share in March 2019 Currently $18.59 (-78.7%)
By: TrendSpider | May 12, 2022
• $LYFT Lyft IPO was at $87.24 per share in March 2019 Currently $18.59 (-78.7%).
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$LYFT Putrid report, call worse.. nothing good to say here
By: Options Mike | May 7, 2022
• $LYFT Putrid report, call worse.. nothing good to say here.
ATL is 15.. in play.
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Lyft brings shared rides back to more cities, including San Francisco
By: Engadget | May 5, 2022
• Riders in San Jose, Denver, Las Vegas and Atlanta can also once again split the cost of trips with strangers.
Lyft is slowly but surely bringing back shared rides in more cities. Users in San Francisco, San Jose, Denver, Las Vegas and Atlanta will once more be able to take shared rides.
That option was suspended soon after the COVID-19 pandemic took hold in March 2020. Lyft started offering shared rides again last summer in select cities such as Chicago, Denver and Philadelphia. The company plans to bring the feature back to more markets in the coming months.
Users can save money by taking a shared ride, since they'll be splitting the cost with someone else. Ride requests are currently limited to one person. These rides will have a maximum of two passengers, though one can sit in the front if the driver's okay with it.
The company also says that drivers can opt out of shared rides without penalty through 2022. Last month, Lyft dropped its requirement for drivers and passengers to wear masks, which are now optional for shared rides too (depending on local rules).
Lyft's recovery from the pandemic has been slower than rival Uber's, and greater availability of shared rides could provide a boost to business. This week, the company said it would need to spend more on incentives to entice drivers back to its platform.
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Lyft's Revenue and Operating Loss each quarter since Q1 2018
By: Bullish Rippers | May 4, 2022
• Lyft's Revenue and Operating Loss each quarter since Q1 2018.
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It Just Doesn’t Let Up: Lyft Plunges 26% Afterhours, Down 74% from the Hype-and-Hoopla Trade out the IPO Gate
By: Wolf Richter | May 4, 2022
• Another stock gets added to my Imploded Stocks column.
Shares of Lyft got shookalacked in afterhours trading today after the company reported Q1 earnings – another huge loss, this time $197 million, bringing the total loss over the past five years to $7.1 billion, which takes a lot of doing for a taxi enterprise to be losing such piles of money.
Shares started plunging as the executives were discussing their outlook, and by the time they got done jabbering, the stock [LYFT] had plunged 26% to $22.85, back into the neighborhood of the March 2020 low, and down 74% from the high, which was the artificially hyped fake share price right out the gate on the first day of trading in March 29, 2019. And so now, Lyft has earned itself a place on my rapidly growing list of Imploded Stocks (data via YCharts).
This mess comes a week after Lyft had restated its 2021 results. In the April 29 filing with the SEC, Lyft said that an “accounting error” had occurred in its reporting for 2021, with the result that the loss was understated, and the actual loss for the year was increased to $1.06 billion.
The first day of trading was a classic hype-and-hoopla operation, staged by Wall Street firms to pull a bag over investors’ heads, or at least allow them to think that there would be a greater fool out there that they could sell those misbegotten shares to. But the company has by now lost $7.1 billion and continues to lose piles of money, and continues to thackamuffle its investors.
The hype-and-hoopla at the IPO on March 29, 2019, was huge, and the stock didn’t start trading until noon, but it didn’t last long. Just about instantly, the shares began to tank, dropping 10% during the first day, actually just during the first four hours, the beginning of an epic long hard decline that now amounts to 74%.
This is the chart I used on March 29, 2019 to depict the first day of trading:
During the call with analysts today, executives saw revenues for Q2 that were shy of the expectations, and they saw an “adjusted EBITDA” – a homemade metric of positive cashflow when in fact the company is losing a ton of money – of $10-$20 million when Wall Street analysts were expecting on average $83 million of “adjusted EBITDA.”
Lyft said all the wrong things. The number of riders it said it had during the quarter fell short of expectations and worse, they were down from Q4. And to attract and retain drivers, it paid out heavily on driver incentives, and worse, it said that it would pay out even more for driver incentives.
Like Uber, Lyft operates a taxi enterprise that cannot make money under GAAP and wasn’t designed to make money under GAAP but was designed to bamboozle investors with revenue growth and homemade metrics – and now it turns out, even those have been falling short.
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$LYFT Just a smidge outside the Bollinger Bands down -33.5% on the day
By: TrendSpider | May 4, 2022
• $LYFT Just a smidge outside the Bollinger Bands down -33.5% on the day
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Lyft says will spend more to bring back drivers; revenue forecast lags Wall Street
By: Tina Bellon | May 3, 2022
(Reuters) -Lyft Inc on Tuesday forecast second-quarter revenue below Wall Street expectations and said it would spend more to increase the supply of drivers, signaling higher costs of getting cars back on the road.
Shares fell 25% in after-hours trade.
First-quarter active ridership dropped 4.8% from the previous quarter in the first three months of the year, overshadowing revenue and operating earnings that topped Wall Street targets on Tuesday.
Ride hailing company Lyft (NASDAQ:LYFT) forecast revenue of $950 million to $1 billion, shy of the average analyst estimate of $1.02 billion, according to IBES data from Refinitiv.
Active riders were 17.8 million, down from 18.7 million in the previous quarter and up from 13.5 million a year earlier. Ridership is typically lower in the first quarter with demand for ride-hail, bike and scooter trips declining during the colder months.
Consumers eager for post-pandemic normalcy shrugged off higher prices to keep spending on Lyft rides, President John Zimmer said in an interview with Reuters.
"That tailwind coming out of the pandemic is much more impactful to our business ... than is the impact of inflation," Zimmer said.
The number of drivers, many of whom left as demand dwindled during the pandemic, remained below pre-pandemic levels and a full recovery of driver supply was taking longer than Lyft had hoped, Zimmer said. Lyft and rival Uber Technologies (NYSE:UBER) Inc have tried to lure back drivers with added incentives in recent quarters.
Shares of Uber, which will report results on Wednesday, were down 12% in after-hours trade.
Lyft executives during Tuesday's earnings call said the company plans to invest more in driver incentives in the second quarter, but declined to provide a concrete dollar figure.
Drivers have also been burdened with surging fuel costs brought on by Russia's invasion of Ukraine, prompting some to stop driving or drive less.
Lyft and Uber have instituted a temporary fuel surcharge in an effort to help drivers.
FIRST QUARTER BEAT
Lyft reported first-quarter revenue of $875.6 million, beating average analysts' expectations for $846 million, according to Refinitiv data.
At $54.8 million, the company's operating earnings, a metric known as adjusted EBITDA that excludes stock-based compensation and some other costs, significantly surpassed its own guidance and analyst expectations. Analysts had expected $17.8 million in adjusted EBITDA after Lyft guided for a top range of $15 million.
Lyft executives have repeatedly talked about the company's pricing power, a trend Zimmer expects to continue even as consumers face wider price increases for goods and services across the economy.
"We'll keep an eye on it, but we're very confident in our ability to balance supply and demand," Zimmer said.
Average U.S. per-ride prices for Lyft and Uber were 37% higher in March than during the same month in 2019, according to research company YipitData.
Zimmer said demand overall still remained 30% below pre-pandemic levels in the fourth quarter of 2019, giving the company "quite a bit of headroom."
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Lyft Falls Following Earnings Miss, Revenue Beat
By: Investing.com | May 3, 2022
LYFT Inc (NASDAQ:LYFT) stock initially jumped 2% in extended trading after the company reported first-quarter earnings.
The company announced a loss per share of 57 cents on revenue of $875.6 million. Analysts polled by Investing.com anticipated a loss of 10 cents a share on revenue of $846.96 million.
Lyft said rideshare ride volumes reached a new pandemic high during the quarter.
“Our Q1 results meaningfully exceeded our outlook. This outperformance was driven by increased demand and resilient driver levels,” said Elaine Paul, the chief financial officer of Lyft.
“We will continue improving service levels to benefit our business in the near-term and put us in the best position to support increasing demand over the long-term. We also expect to strategically invest in key business initiatives to support our continued growth,” Paul added.
Lyft stock gave up early gains and fell a further 3%.
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Options Bulls Latch Onto Lyft Stock Ahead of Earnings
By: Schaeffer's Investment Research | May 3, 2022
• The company will report after the close today
• The rideshare name has been underperforming on the charts
Lyft Inc (NASDAQ:LYFT) is seeing an options surge, as traders target the stock ahead of the company's first-quarter earnings report, due out after the close today. So far, 54,000 calls and 29,000 puts have been exchanged, which is six times the intraday average. The weekly 5/6 35-strike call is the most popular, with new positions being bought to open there.
Call volume is nearly doubling put volume today, showing options traders are remaining bullish ahead of the earnings event. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), LYFT sports a 50-day put/call volume ratio of 3.25, which sits higher than 96% of readings from the past year. In other words, options traders have been picking up long calls at a much quicker-than-usual clip of late.
These traders are expecting a bounce from the underperforming rideshare name, which is still trading near yesterday's 18-month low of $29.93. Down 2.6% to trade at $30.67 at last glance, LYFT is sporting a 28% year-to-date deficit. On the charts, the equity's 100-day moving average has helped guide it to these lows.
Looking at Lyft stock's post-earnings history, the security has managed a positive next-day swing after five of its last eight reports. This time around, the options pits are pricing in a post-earnings return of 20%, which is much higher than the 8.1% move the stock has averaged over the last two years, regardless of direction.
It's also worth noting that short interest represents 8.3% of the stock's available float. At the stock's average pace of trading, it would take nearly four days to buy back these bearish bets.
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Earnings Previews: Lyft Inc. (NASDAQ: LYFT)
By: 24/7 Wall St. | May 2, 2022
• Here is a look at three more companies also reporting earnings after markets close on Tuesday.
Lyft
Ride-hailing operator Lyft Inc. (NASDAQ: LYFT) has seen its share price plummet by about 49% over the past 12 months. The stock’s 52-week high was posted early last July. Last week the company restated 2021 financial statements. Instead of an incorrectly stated loss of $1.01 billion ($3.02 per share), the restated loss is $1.06 billion ($3.17 per share). The erroneous data did not affect the financial outlook Lyft gave in February. Shares fell nearly 3% following the Friday report.
The 40 analysts covering the stock come down on Lyft’s side, with 24 having a Buy or Strong Buy rating and another 14 rating the stock at Hold. At a recent price of around $32.60 a share, the upside potential based on a median price target of $55 is 68.7%. At the high target of $78, the upside potential is 139%.
First-quarter revenue is forecast at $845.57 million, which would be down 12.8% sequentially but up almost 39% year over year. The company is expected to report a loss per share of $0.07, sharply better than the loss of $0.35 per share in the year-ago quarter. For the full 2022 fiscal year, analysts are currently estimating EPS of $0.61, solidly better than last year’s loss per share of $0.25, on sales of $4.24 billion, up 32.3%.
Lyft stock trades at 53.5 times expected 2022 EPS, 20.8 times estimated 2023 EPS of $1.57 and 12.0 times estimated 2024 earnings of $2.72 per share. The stock’s 52-week range is $31.52 to $63.07. Lyft does not pay a dividend. Total shareholder return for the past 12 months was negative 42.9%.
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$LYFT this sort of volume/OI on the chain for 2 strikes, same expiration, looks like some sort of spread
By: unusualwhales.com | May 2, 2022
• $LYFT this sort of volume/OI on the chain for 2 strikes, same expiration, looks like some sort of spread. Sure enough, lots of multileg action on the 27.5/30.5 put spread expiring this week. Hard to tell if it's a bear or bull spread. Earnings tomorrow afterhours.
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Lyft introducing hundreds of new electric bicycles for NYC Citi Bike members
By: nypost | April 29, 2022
• Citi Bike’s electric-powered bicycle fleet is getting a boost of 1,500 “sleek” new e-bikes with fancy LED screens and double the battery capacity.
The new bikes will speed up faster than the existing 5,000-bike e-bike fleet run by Lyft, a company spokesman said, and travel 55 to 60 miles before losing battery. The existing fleet’s batteries average 25 miles before gassing out, the spokesman said.
The bikes will initially only roll out starting May 5 for Citi Bike members, the company said. Non-members will be able to enroll in a free 15-day trial using their phones at bike-share stations.
Citi Bike hopes to lure new riders with the bikes, which compared to the existing e-bikes also have more height-adaptable seats and “retro-flective” white paint that glows from headlights.
Lyft believes the LED screen will assist riders in locking and unlocking their bikes, and may someday provide navigation as well.
Unlike the existing bikes, the new model’s battery will be located within the bike...
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Ride Share Stocks Rev Higher After Lifting Mask Mandate
By: Schaeffer's Investment Research | April 19, 2022
• Both Uber and Lyft will no longer require riders or drivers to wear a mask
• Both equities are still sporting sizeable year-over-year deficits
Ridesharing bigwigs Uber Technologies Inc (NYSE:UBER) and Lyft Inc (NASDAQ:LYFT) are on the rise today after both companies announced they were lifting their mask mandates for both drivers and passengers, starting today. This update comes after a Florida judge said on Monday that the Center for Disease Control and Prevention's (CDC) mask requirements on airplanes and public transportation overstepped their authority, with mask mandates being lifted by the Transportation Security Administration (TSA) as well as most major airlines.
At last check, UBER was seen up 5.4% at $33.49, still a long ways from its February highs above the $62 level, but set to close atop its 10-day moving average for the first time since April 4. It's been a choppy ride lower for Uber stock since that peak, with the stock shedding 42% in the past 12 months. It's worth noting that Uber stock sits right on the cusp of being "oversold," with a 14-day Relative Strength Index (RSI) of 33, which could indicate a short-term bounce is on the horizon.
Things haven't been much easier for sector peer LYFT, which has dropped 41.3% in the past year, and is down 15% in 2022. The security was last seen up 5% at $36.35, as it tries to distance itself from its April 11 annual low of $32.35. Meanwhile, Lyft stock sport an RSI of 37.
Options traders remain bullish on Lyft stock. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), LYFT sports a 10-day call/put volume ratio of 5.15, which stands higher than all but 4% of readings from the past year. In other words, long calls have rarely been more popular in the past 12 months.
Uber stock's options pits reflect this optimism. In fact, at the ISE, CBOE, PHLX, 4.77 calls have been picked up for every put over the past two weeks. This ratio sits higher than 74% of annual readings, implying a healthier-than-usual appetite for long calls.
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$LYFT Chatter that $DASH is looking to buy them..
By: Options Mike | April 10, 2022
• $LYFT Chatter that $DASH is looking to buy them.. not sure I believe that and clearly the market didn't either.
New 52W low and gap to fill to 32.
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Everyone enjoy these #UBER & #LYFT levels this week.
Price Levels to Watch for in Stocks UBER & LYFT.
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Lyft ties up with Payfare to hike fuel cashback in bid to retain drivers
By: Reuters | March 21, 2022
• Lyft Inc’s Lyft Direct cardholders will receive an increase in cashback rewards of 4% to 5% on purchase of gasoline until June 30, the ride-hailing firm said on Monday, its latest move to retain drivers amid a rise in fuel prices.
Lyft Inc’s Lyft Direct cardholders will receive an increase in cashback rewards of 4% to 5% on purchase of gasoline until June 30, the ride-hailing firm said on Monday, its latest move to retain drivers amid a rise in fuel prices.
Chief Executive Officer Marco Margiotta said the higher cashback in partnership with fintech company Payfare will help drivers stay on the road and “ease the pain of rising gas prices.”
Prices for gasoline have soared more than 20% from last month, according to the American Automobile Association, driven by higher crude oil rates due to the Russian invasion of Ukraine.
The company said Lyft Direct cardholders can save up to 21 cents per gallon on average with the increased cashback.
Uber and Lyft drivers have considered quitting the app-based ride-hailing platforms as fueling up becomes costlier.
Both the platforms over the past few months have been investing in keeping drivers and bringing in more to meet rising demand as COVID-19 cases ease and consumers venture out.
In response to record gas prices, the companies earlier this month announced a 55-cent per-ride surcharge that would be paid directly to drivers.
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Uber, Lyft drivers consider quitting as pain at the gas pump grows
By: Reuters | March 18, 2022
A number of Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT) drivers are considering quitting the app-based ride-hailing platforms as fueling up becomes costlier, with some calling the newly announced surcharges "insulting".
The companies announced this month a 55-cent per-ride surcharge that would be paid directly to drivers, in response to record gas prices because of the Ukraine crisis.
But Uber and Lyft drivers, who form a big chunk of the gig economy and typically pay for their own gas, are not happy.
A survey of over 300 drivers conducted by the Rideshare Guy, a popular blog followed by drivers, showed about 15% of them had already quit driving and nearly 40% were driving less.
"It's rather insulting that they even suggest 55 cents per ride because you have rides that are two minutes long and then you have rides that are an hour long," said Fabricio Lombeyda, a part-time driver in Buford, Georgia.
Uber and Lyft, however, have said the number of active drivers on their platforms is steadily rising, as people return to offices, book more rides to airports and nightlife resumes.
"We've not seen a decline in the number of drivers on the platform or the hours they drive when, for example, you compare March to January," Lyft said in a statement.
Lyft cited an internal analysis that showed drivers in the United States were spending on average of 75 cents more on gas per hour, but were still earning more per hour than they were a year ago, when the pandemic dimmed demand for rideshare.
Uber lifted its core profit forecast earlier this month on faster-than-expected growth in rideshare demand.
Both companies, however, face the prospect of drivers quitting as runaway fuel prices burn a hole in their pockets.
"There is some risk of driver departures, otherwise you would not have seen both Uber and Lyft institute surcharges," MScience analyst Michael Erstad said.
Another survey by Coworker.org that polled over 200 participants showed 90% agreed the surcharges were just not sufficient and that they would not be able to afford to take longer rides.
The business model of ride-hailing companies was based on gas being $3 per gallon, said David Marcotte, a senior vice president at data analytics firm Kantar.
But gas prices on Friday stood at $4.27 per gallon, even surpassing $5 a gallon in some parts of the country.
He also warned a rollback of the surcharge could cause more problems in an already strained labor market, making a loose connection to retail workers seeking better wages after the reversal of "hero pay" offered during the height of the pandemic.
For now, drivers are caught between a rock and a hard place.
"First and foremost, we have been trying to get higher wages per trip even before the gas prices went up. Now to insult us with this minimal amount is ridiculous," a participant in the Coworker survey said.
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Lyft to charge 55 cents as fuel surcharge due to rising gas prices
By: Reuters | March 16, 2022
Lyft Inc (NASDAQ:LYFT) said on Wednesday riders in the United States, except for those in New York City and Nevada, would have to pay an extra 55 cents for their commute as the ride-hailing company looks to cushion the impact of high gas prices on drivers.
Companies hiring gig workers have started imposing these surcharges as drivers on social media protest about high gas prices due to Western sanctions on Russia, a major oil producer.
The fuel surcharge policy kicks in starting next week and will stay in place for at least 60 days, Lyft said, adding that the money will go directly to drivers.
The move mirrors that of rival Uber (NYSE:UBER), which said its customers would have to pay a surcharge of either 45 cents or 55 cents on each trip.
On Tuesday, food-delivery company DoorDash had said its U.S. delivery partners would be eligible for a 10% cashback on gas purchases beginning March 17.
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