3 Reasons Why Lyft Stock May Continue to Struggle
In its fourth-quarter report, Lyft (NASDAQ: LYFT) came in ahead of revenue and earnings estimates. The company brought in revenue of $1.02 billion. This represents a 52.4% increase from the same quarter last year when the company logged revenues of $669.57 million. It also beat consensus estimates by $35.75 million. This gave the company a net loss of $356 million, well above the $248.9 million loss for the same quarter last year. Lyft also increased the number of active riders to 22.9 million, up from last year's 17.9 million.
Many had hoped for a stellar earnings report and bump in Lyft stock similar to its principal competitor, Uber (NYSE: UBER). Uber moved higher following earnings as it reported that it expected to earn a quarterly profit by the end of fiscal 2021. Unfortunately for Lyft investors, the stock sold off following the Tuesday afternoon report. The selling also continued in subsequent trading days.
Tech stocks in the rideshare industry have generally struggled. Lyft stock reflects that industry trend, but when it comes to the specifics of Lyft, investors need to remember three things
Source Fool.com
