Lyft Stock Jumps 60% On Q4 Earnings Error Before Pullback
Portfolio Pulse from Adam Eckert
Lyft Inc's stock surged over 60% in after-hours trading following its Q4 earnings announcement, which included strong guidance for future bookings and adjusted EBITDA. However, the stock later pulled back after CFO Erin Brewer corrected an overstatement in the adjusted EBITDA margin guidance for 2024 from 500 basis points to 50 basis points. Despite this, shares remained up by approximately 16% due to positive free cash flow forecasts for 2024.
February 13, 2024 | 10:40 pm
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Lyft Inc's shares initially jumped over 60% after-hours due to strong Q4 earnings and future guidance, but corrected after an EBITDA margin guidance error. Shares still ended up approximately 16% on positive 2024 cash flow forecasts.
The initial surge in Lyft's stock price was driven by strong Q4 earnings and optimistic future guidance. The correction in adjusted EBITDA margin guidance caused a pullback, but the stock remained significantly higher due to the positive outlook for 2024, particularly the forecast for positive free cash flow for the first time.
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