Lyft Plunge Wipes Off Nearly a Third of Market Valuation
- Shares sink 30% as projected revenue misses estimates
- Gloom from Lyft’s results, commentary weigh on peer Uber
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Lyft Inc. lost nearly one-third of its market value on Wednesday after the ride-hailing company’s second-quarter outlook and plan to increase spending on driver incentives disappointed Wall Street, highlighting investors’ willingness to dump growth stocks at the first hint of trouble.
The San Francisco-based company’s shares closed down 30% at $21.56 in New York. The decline is the stock’s steepest-ever drop in a single session, and marks a descent of 72% from the record-high of $78.29 touched in March 2019.