Lyft's monumental mistake in a press release briefly sent its shares soaring 67% before it issued a correction—and reversed the rally
Lyft issued a massive correction to its outlook for earnings margin in 2024, saying its margin is expected to expand by 50 basis points — not the 500 basis points written into an earnings presentation released earlier on Tuesday.
“This is actually a correction from the press release,” Erin Brewer, Lyft’s chief financial officer, said in a call with analysts. “In my prepared remarks, I referenced 50 basis points of margin expansion.” A spokesperson for the company attributed the correction to a clerical error.
The blowout forecast may have contributed to a surge in Lyft’s shares in after-market trading on Tuesday. The stock jumped as much as 67% on the company’s outlooks before erasing gains during the call with investors. It was up 20% at 5:52 p.m. in New York.
