Why is LYFT stock sliding today?
Summary
Lyft shares are experiencing a downward trend in the market today. Investors and analysts are closely monitoring the price movement as the stock loses value during the trading session.
Our Take
Lyft's third quarter missed on the headline numbers: a loss of 3 cents per share against expectations for a profit of 18 cents, and revenue of $1.82 billion versus $1.92 billion expected. A $117.9 million charge for legal and regulatory matters, including a California driver settlement, did much of the damage. The business itself kept growing, with record riders (31.6 million, up 10%) and gross bookings up 17% to $5.6 billion.
The stock was down about 8% premarket, opened at $16.70 and is trading near $16.90 at midday, down about 5%, after giving back most of Wednesday's jump. Analysts at Evercore and Rosenblatt cut their price targets to $20 and $18. Levels we're watching: $16.33 (today's low) and the $16.20 area (Monday and Tuesday lows) are support, and below that $15.80. On the upside, $17.13 (today's high) is first resistance, then $17.84, Thursday's close and the gap fill. Holding above $16.33 into the close would show buyers are defending the growth story despite the miss.
Opinion of Tech & Money Press. Not financial advice.
Source: Read the full story at Stock Market News