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Lyft Stock Closes Up 8% as Ride-sharing Companies Recover Despite Declines in Tech Stocks

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by Ibukun Ogundare · 3 min read
Lyft Stock Closes Up 8% as Ride-sharing Companies Recover Despite Declines in Tech Stocks
Photo: Unsplash

Lyft said that the company expects its recovery to continue into March, following its best week in terms of volume in late February.

Stocks of ride-sharing companies like Uber Technologies Inc (NYSE: UBER) and Lyft Inc (NASDAQ: LYFT) are on the rise despite the recent declines in tech stocks. Lately, tech stocks have been under pressure due to rising yields.

On the 3rd of March, ride-sharing companies like Lyft and Uber rallied and trading closed with gains. Lyft stock closed up more than 8% after the company said it was gradually rebounding from losses sooner than anticipated. Lyft noted that the company saw its best week in volume in the last week in February. According to the ridesharing company, Lyft has been recording losses since the global lockdown in March last year. As the lockdown eases and more countries are now lifting restrictions bans, Lyft’s business is beginning to get stronger. The company’s recovery is also happening as the rollout of the coronavirus vaccine continues in the country.

Lyft Records Increase in Volume amid Ride-sharing Stocks Rally

According to a filing with the US Securities and Exchange Commission (SEC) on the 2nd of March, Lyft now expects to manage lesser losses than earlier predicted. Previously, the company forecasted that its adjusted EBITDA loss would be around $145 million to $150 million in the first quarter. Now, the company said in the SEC filing that it expects to manage its Adjusted EBITDA loss in Q1 to $135 million.

Stating further, Lyft said that the company expects its recovery to continue into March, following its best week in terms of volume in February end.

Analysts at one of the world’s largest independent investment research firms CFRA, said:

“We believe LYFT is poised to show an inflection towards positive year-over-year growth starting the week of March 21, which we think will accelerate into the summer months barring any setbacks with vaccine rollouts. We see LYFT’s Q1 rides outlook as a positive, especially given the still uncertain landscape of the pandemic and weather issues in certain regions.”

Lyft stock has gained more than 53% over the past year and 25.71% since 2021 began. The company has increased 42.30% in the last three months and spiked about 25% over the past month. In the last five days, Lyft has rallied 4.45%. Currently, at after-hours trading of $61.26, the ridesharing company’s stock is down 0.81% over its previous close of $61.76.

As Lyft closed up more than 8%, Uber shares also closed up 2.6%. Uber has jumped over 4% in the last five days. MarketWatch data showed that the company has grown by 10.02 % in its year-to-date record. In addition, UBER has spiked 5.69% in the last three months and more than 4% in the last five days.

Additionally, Truist analysts said that Lyft’s business updates show that business should improve and begin to see gains as the government eases restrictions on social activities and gatherings. The analysts also added that business trends should improve as more people return to work as the pandemic gradually declines.

Business News, Market News, News, Stocks, Wall Street
Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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