Lyft Drop Shows How Wall Street Is Punishing Slowing Growth
- Steep selloff hits as investors grow wary of earnings misses
- Consumer-facing stocks face heavy pressure to meet estimates
This article is for subscribers only.
Ride-hailing company Lyft Inc. wiped out more than a fifth of its market value in a single session as its disappointing third-quarter results make it the latest casualty of jittery investors punishing companies that fail to meet expectations.
Lyft’s quarterly numbers -- revenue, loss and the number of active riders -- were all worse than anticipated and looked grim when juxtaposed against Uber Technologies Inc.’s recent strong results. Shares of Lyft closed down 23% at $10.90, touching an all-time low.