Lyft Inc.’s stock, which has declined five out of the past six days, hit its lowest intraday trading level Thursday and is on track to close at a record low.
Less than a month ago, Lyft LYFT, -1.01% reported fourth-quarter results and an outlook that fell short of Wall Street expectations, causing its shares to tank 36%. Since then, the ride-hailing company’s stock has closed lower in regular trading more times than it has closed higher.
Lyft shares are down 2% to $9.70 in midday trading Thursday. They traded as low as $9.52 Thursday, an all-time low. Their previous record low, reached on Dec. 27, 2022, was $9.87.
Though the company last month reported record fourth-quarter revenue for the second quarter in a row, its first-quarter revenue forecast fell below the $1 billion analysts expected, and its executives signaled they would need to increase spending to remain competitive with the company’s bigger rival, Uber Technologies Inc. UBER, +1.74%.
Several analysts downgraded Lyft’s stock and cut their price targets after the company’s earnings call, with Wedbush analyst Daniel Ives calling it a “top 3 worst call we have ever heard.”
This week, Bernstein analysts wrote: “Uber continues to take market share, with healthy incremental margins; investors worried about price competition from Lyft but for now we think risk is low, and view Lyft’s actions as more of an effort to close the gap to Uber.”
Lyft’s stock is down 12% year to date and is off 75.9% from its 52-week closing high of $40.16 on March 29, 2022. Uber’s stock is up about 34% so far this year.
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