One of the leading names in the ride-sharing and ride-hailing sector, Lyft Inc. (NASDAQ: LYFT), is likely to drop its Q1 2023 earnings on May 4, 2023. LYFT stock price rarely made any significant movement in the last 24 hours. Currently, the stock is trading at 10.64 USD, after a slight growth of 0.47% in a day, close to the lower side of its 52-week range of 8.19 USD to 22.82 USD.
Since its last earnings report for Q4 2022, released in February this year, LYFT stock has consolidated after a steep drop of approx 17 USD to 10 USD. It witnessed its lowest of 8.19 USD in this period during mid-March. Though the company reported better revenue of 1.175 billion USD than the estimated 1.154 billion USD, the reported earnings per share (EPS) of -0.762 USD was significantly lower than the estimated 0.126 USD.
Before the upcoming earnings release, the earnings per release (EPS) is expected to remain around -0.099 USD and revenue 981.705 million USD.
LYFT Stock Price Movement on Chart
As mentioned earlier, in the aftermath of an unsatisfactory earnings report and current circumstances, LYFT stock price suffered its lowest trading price since its listing.
LYFT stock trades below the significant moving averages and hovers in a narrow consolidation range. Moreover, the recent gap-down move of the chart gives sellers an advantage to make a short buildup and remain priced below the 50 EMA.
However, the price is near the demand zone, and any probability of more downside is significantly less; on the other side, buyers’ bounce back is likely to happen in the upcoming sessions.
Analysts are also taking a balanced approach toward the LYFT stock. WSJ analysts suggested a “hold” to the stock rating and set a target of 13.97 USD. Marketbeat provided a similar rating with a target price of 17.57 USD.
Lyft in Anticipation of an Uplift
Lyft is the second biggest ride-hailing service in the United States and among the fastest-growing ones. However, the company had been going through struggling phases, given the turnovers at the executive level and layoffs.
The company appointed former Amazon and Microsoft executive David Risher as the chief executive officer of Lyft in early April 2023. The co-founders, Logan Green and John Zimmer were announced to step down from their positions of chairman and president in April and June, respectively.
In addition, the company reported laying off 13% of its workforce across its departments in November last year. Following the appointment of a new CEO, Lyft is said to move on with another round of reducing the headcount in the company. In its SEC filing in April end, it noted laying off around 1,072 employees, making it 26% of its workforce. Additionally, it announced the halting of additional hiring of 250 positions.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/03/lyft-stock-shows-no-enthusiasm-prior-to-earnings-release/