Lyft Craters on Plans to Spend More on Driver Incentives
- Company’s revenue, earnings forecasts miss estimates
- Drivers are struggling to cope with spike in gas prices
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Lyft Inc. shares plunged after a weaker-than-expected outlook sparked investor concerns that a planned increase in spend on driver incentives could weigh on profits.
The San Francisco-based company sees earnings before interest, tax, depreciation and amortization of $10 million to $20 million in the current period, substantially missing the $81 million Wall Street projected. The shares were down 26% in pre-market trading.