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Lyft Shares Jump As Company Reports 26% Increase In Rides In May, Upgrades Q2 Expectations

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Lyft Shares Jump As Company Reports 26% Increase In Rides In May, Upgrades Q2 Expectations

The shares of Lyft Inc. (NASDAQ: LYFT) jumped in the after-hours session on Tuesday as the ride-hailing company reported an increase in business following the lifting of novel coronavirus-related (COVID-19) lockdown.

What Happened

Lyft said the total number of rides increased 26% in May compared to the previous month, CNBC reported. The sales were nevertheless down 70% compared to a year ago as demand remained low due to the pandemic.

The Uber Technologies Inc. (NYSE: UBER) competitor said it isn't expecting an adjusted EBITDA loss of more than $325 million for the second quarter ending in June, if the demand for the rides remains at a similar level in June as May, according to CNBC.

Lyft had previously said the adjusted EBITDA loss could be as much as $360 million in Q2.

The San Francisco-based company beat analyst estimates for the first-quarter results earlier this month, reporting a loss of $1.31 per share and an adjusted EBITDA loss of $85.2 million.

Lyft and Uber's businesses have also taken an impact from the ongoing widespread protests in the United States following the death of George Floyd, needing to suspend operations in some cities, after being already battered by the coronavirus.

Lyft Price Action

Lyft shares traded 4.7% higher at $33.17 on Tuesday after closing the regular session 2.8% lower at $31.68.

 

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Posted-In: CNBC Covid-19 George Floyd Ride Sharing AppsEarnings News Media Best of Benzinga

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