Written by Brenda Nakalema

Lyft’s Outlook Was So Bad, and Uber Stock Is Affected Too

Lyft is the latest technology company to face the wrath of the current market and global issues affecting its peers …

Lyft is the latest technology company to face the wrath of the current market and global issues affecting its peers in the industry. Shares were dropping in extended trading after the ride-hailing company issued a luck-lustre outlook for Wall Street.

Lyft (ticker: LYFT) reported a net loss of $196.9 million, or 57 cents a share, a disappointment from Wall Street’s consensus estimate of a net loss of 54 cents a share. Revenue of $875.6 million was ahead of estimates of $848.9 million. Non- GAAP net income of $24.6 million, or 7 cents a share, compared with a net loss of 7 cents a share, as reported by FactSet. The company’s active rider numbers of 17.8 million climbed 32% year over year, while revenue per active rider was at $49.19.

Lyft stock dropped 26% in after-hours trading. Shares of its rival Uber Technologies (ticker: UBER) fell 10%.

Uber earnings will be released early Wednesday, and according to the company, its earnings call is scheduled for 8. am “to provide a more timely update on the company’s performance and guidance before the market opens.”

Lyft shares continued to reflect the losses made by the company during the company’s earnings call as management unveiled its outlook. According to the company, it is expected that the second-quarter revenue will fall between $950 million and $1 billion, a decline from consensus estimates of $1.02 billion, according to FactSet. Its guidance for adjusted earnings before interest, taxes, depreciation and amortization of roughly $10million to $20 million fell far below analyst expectations of $83.1 million.

According to Chief Financial Officer Elaine Paul, the firm planned to increase investment in driver supply during the second quarter.

“This will set us up for the long term and ensure we’re doing everything we can to take care of drivers and riders with the best possible experience,” Paul said. “We also expect to invest in key business initiatives to support the continued growth of our company.”