Lyft Stock Jumps As Founder Gives Guidance On Profitability | Investor's Business Daily
Lyft ( LYFT) shares jumped Tuesday after Chief Executive Logan Green said the ride-sharing company could be profitable by 2021, a year ahead of Wall Street expectations. Lyft stock was up more than 11% at one point on the news.
Green made the comment at a technology conference held by the Wall Street Journal Tuesday. It was a fireside chat that included Lyft President John Zimmer.
"We're going to be profitable on an adjusted EBITDA basis a year before analysts expect us to," Green said, according to reports. "We're going to hit this target in Q4 2021."
EBITDA stands for earnings before interest, tax, depreciation and amortization. It's one measure of a company's operating performance.
Big Jump For Lyft Stock
Lyft stock jumped nearly 11% at one point and was up 7.4% to 43.90 during afternoon trading on the stock market today. Uber ( UBER) stock jumped 4.3%, near 32.27.
Lyft competes with Uber in the ride-hailing sector and both have yet to show a profit. The stocks of both companies have faltered since their initial public offering earlier this year.
Lyft stock is down 38% from its initial public offering price of 72. Uber stock is down 26% from its IPO price of 45.
Needham analyst Brad Erickson said the Lyft comment was a turning point.
"Today marks a potentially pivotal data point around investors changing their view and realizing that mobility platforms can and will make money someday," Erickson wrote in a note to clients.
Lyft Earnings Better Than Expected
Lyft, for the second quarter, reported earnings and sales that came in better than expected, as it raised its full-year guidance. Revenue jumped 72% from the year-ago quarter to $867.3 million, but it showed an adjusted loss of 68 cents.
The company also forecast third-quarter revenue in the range of $900 million to $915 million, above estimates of $841 million.
Uber missed expectations with its second-quarter earnings report. Revenue grew 14% from the year-ago period to $3.16 billion, with an adjusted loss of $4.72 a share.Please follow Brian Deagon on Twitter at YOU MIGHT ALSO LIKE: Lyft Stock Climbs On Wall Street Upgrades, Price Target Raises Uber Stock Gets Wall Street Upgrade On Positive Third-Quarter Outlook These Are The IBD 50 Growth Stocks To Watch Learn How IBD's ETF Market Strategy Can Help You Avoid Losses Get Timely Buy & Sell Alerts With IBD Leaderboard @IBD_BDeagon for more on tech stocks, analysis and financial markets.
Lyft shares are trading higher after the company said it expects to reach profitability on an adjusted Ebitda basis by the fourth quarter of 2021, a year ahead of current Wall Street expectations.
More News in Technology
Wolfe Research upgraded shares of LYFT (NASDAQ:LYFT) from an underperform rating to a peer perform rating in a research report released on Monday, BenzingaRatingsTable reports. A number of other equities analysts also recently commented on LYFT.
Wolfe Research upgraded shares of LYFT (NASDAQ:LYFT) from an underperform rating to a peer perform rating in a report issued on Monday morning, BenzingaRatingsTable reports. LYFT has been the topic of a number of other reports.
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