Why Lyft Stock Crashed Today
Shares of Lyft (NASDAQ: LYFT) plummeted 30% on Wednesday after the ride-sharing company warned investors that paying up to retain drivers would weigh heavily on its profits.
Lyft's revenue rose 44% year over year to $875.6 million in the first quarter. This growth was driven by a 31.9% jump in active riders, to 17.8 million, and a 9% rise in revenue per active rider, to $49.18. Essentially, more people used Lyft's transportation services more often.
Lyft's losses, in turn, narrowed to $196.9 million compared to a net loss of $427.3 million in the year-ago quarter.
Source Fool.com
