Lyft stock crashes after reporting disappointing Q1 earnings, weakened guidance
The Yahoo Finance Live team discusses the latest movement of Lyft stock.
Video Transcript
DAVE BRIGGS: Lyft crashed. A tough day for the ride sharing company, a brutal day. The stock tanking more than 30% after they posted disappointing earnings and issued weak guidance for the next quarter. Lyft seeing a $2.1 billion market cap loss since yesterday's close. Just devastating.
The Street appears bearish. Take a look at some of the analysts' downgrades here for Lyft. Right now, you have on your screen Citi, neutral. Another neutral, two holds. Truist downgrading from buy. Just say bye-bye to the buy rating essentially is what we're seeing, Seana. It is ugly across this board.
SEANA SMITH: It is very ugly across the board. And I think it's very hard at this point to make the bull case for Lyft, especially when you compare the numbers that we got last night to what we heard from Uber not too long ago. I mean, when you compare those two, it's hard really to make a case of how Lyft is really going to stay remotely competitive to Uber going forward, what the future looks like. I think these numbers really started that conversation, too, just about what would be the best option here going forward for Lyft.
DAVE BRIGGS: It's just so amazing how fast this story turned south essentially overnight because they had been essentially together. I mean, not totally locked away-- cruise stocks are. But right around this earnings report, things just went in opposite directions. Let's check out some of the price target slashes as well. We told you about the downgrades, but also analysts cutting their price target. And look at the first one. I mean, you're talking-- that's not a price cut. That is just taking a hatchet to it to 14. I don't know how it was at 40, but that is what it is.
And then across the line, all six analysts here cutting the price target. Just so many differences between these two companies, which is interesting because as we've talked about often on this program, most people we know get on the app and have both apps side by side and compare price targets. But they look like vastly different companies heading in opposite directions.
And what are the reasons really? So I guess you've got Lyft really is a US-based company. Uber is international. Uber has obviously the Eats side. Lyft does not. But what else do you think is at the heart of this?
SEANA SMITH: Yeah, and I also think the other case for that is that Lyft is just overindexed to the West Coast. That's really where they get the majority of their riders. They don't have the presence that they need just because they are a domestic-based company across the country, which I think has clearly been a big headwind for that company.
