Lyft Sees Itself as a Big Recovery Winner
Few stocks have been hit as hard by the coronavirus pandemic as Lyft (NASDAQ: LYFT).
The No.2 ridesharing company in the U.S. saw revenue fall 61% in the second quarter and posted an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) loss of $280 million. As rival Uber (NYSE: UBER) has also experienced, demand for ridesharing has plunged during the pandemic. Most people who can work from home are doing so, and people are avoiding airline travel and social events, key drivers of ridesharing demand.
Lyft's guidance for the third quarter indicates that it expects the recovery to be sluggish, calling for an adjusted EBITDA loss of $225 million, which doesn't include an incremental $40 million that the company is planning to spend to fight new legislation in California that would force the company to reclassify its drivers as employees. It also said that rides were down 54% in July, marking an improvement from the second quarter, but still a sharp decline from pre-COVID levels.
Source Fool.com
