Lyft, the ride-hailing company, has had a rough start to the year. After releasing its fourth-quarter earnings report, the stock has been on a downward trajectory.
The stock dropped 30% in premarket trading after the company issued weak guidance for the first quarter of 2023. This follows a 20% drop in after-hours trading on Tuesday after the company reported a loss of $1.13 billion.
Analysts have been less than optimistic about the company’s progress towards profitability. According to one analyst, “Lyft is making progress towards profitability, but it’s slow progress.”
The company’s weak guidance has been attributed to a slowdown in its core ride-hailing business. Lyft’s revenue guidance for the first quarter of 2023 was lower than expected, and the company said it expects to see a decrease in active riders in the first quarter of 2023.
The stock has continued to slide following the earnings miss, with shares closing down nearly 20% on Wednesday.
Investors remain cautious about the company’s future prospects. While there is hope that the company can turn things around, it is unclear how long it will take for Lyft to return to profitability.