Lyft Shares Plummet 17% After Weak Forecast

Lyft's shares plummeted by 17% after issuing a weaker-than-expected forecast for the summer quarter, raising concerns about its competitive position against Uber. Despite reporting a net profit of $5 million and a 41% year-over-year increase in revenue to $1.44 billion, Lyft's guidance for gross bookings between $4 billion and $4.1 billion and adjusted EBITDA of $90 million to $95 million fell short of analysts' expectations. The stock has underperformed significantly, losing over 35% this year amid fears of competition from Uber and potential economic downturns. CEO David Risher introduced 'Price Lock', a subscription feature to cap fares, in an effort to retain customers. Analysts highlight that while Lyft has made strides in cost-cutting and increasing ridership, it may struggle to match Uber's broader service offerings and global reach. Lyft's performance and future prospects are closely tied to its ability to meet and revise earnings expectations positively.