Stock Market Today, Feb. 11: Lyft Shares Plunge After Revenue Miss and Weak Ride Metrics

Core Viewpoint - Lyft's stock fell 16.97% to $13.99 after reporting fourth-quarter results that missed revenue expectations and showed weaker ride metrics, raising concerns about long-term profitability targets [1][3]. Financial Performance - Lyft reported Q4 revenue of $1.59 billion, which was below Wall Street's consensus of $1.75 billion, primarily due to a one-time impact of $168 million from legal, tax, and regulatory issues [3]. - Despite the revenue miss, Lyft's active riders grew by 18%, and management projected gross bookings to increase by 18% in Q1 [4]. Market Reaction - Trading volume for Lyft reached 73.1 million shares, approximately 398% above its three-month average of 14.7 million shares, indicating heightened investor activity [1]. - The broader market saw the S&P 500 slip 0.03% and the Nasdaq Composite ease 0.16%, with other ride-hailing services like Uber and Grab also experiencing declines [2]. Future Outlook - Management indicated a target of over $1 billion in free cash flow by 2027, suggesting potential for future growth despite current challenges [4]. - Lyft's market capitalization stands at $5.6 billion, positioning it as a discounted growth opportunity alongside competitors like Uber [4].