Lyft shares soar 67% after worker's TYPO added an extra zero to one of its anticipated profit margins - forcing an apology from the CEO

• Lyft saw a massive surge in stock prices after it forecasted that a profit metric was expected to increase by 5 percent instead of 0.5 percent this year 
• Minutes after, Lyft’s stock price skyrocketed over 60 percent but soon fell down
• The company’s CEO later issued an apology for the error

Lyft stock jumped 67 percent after the bell Tuesday thanks to a typo in the the ride-hailing company’s earnings release.

The mistake overstated – by a factor of ten – how much faster profits will rise this year and sent investors’ algorithms into a buying frenzy.

But Lyft quickly clarified that a decimal point had been put in the wrong place – meaning that, while the profit margin will rise in 2024, it won’t be so dramatic.

A press release issued about the company’s growth results forecasted that an important profit metric was expected to increase by 500 base points (5 percent) instead of a 50 base points (0.5 percent) this year.

Minutes after, Lyft’s stock price skyrocketed over 60 percent but soon fell down after a correction was made.

In a press release issued about the company’s 2023 growth results, a bullet point about its margin expansion said a forecasted 500 base points (5 percent) increase instead of 50 base point (0.5 percent) increase

Minutes after, Lyft’s stock price skyrocketed over 60 percent but soon fell down after a correction was made

After the correction, shares fell but were still up about 20 per cent in out-of-hours trading since earnings still beat most estimates

After the correction, shares fell but were still up about 20 per cent in out-of-hours trading since earnings still beat most estimates.

This morning, when regular stock trading opening, they rose again to be up around 32 per cent as Wall Street overlooked the blunder.

At the time of writing, the share price is at $15.78.

The press release was updated soon after and read: ‘Fifth bulleted list, third bullet of release should read: Adjusted EBITDA margin expansion (calculated as a percentage of Gross Bookings) of approximately 50 basis points year-over-year.

‘[instead of Adjusted EBITDA margin expansion (calculated as a percentage of Gross Bookings) of approximately 500 basis points year-over-year.]’

Later on, Chief Financial Officer Erin Brewer announced the correction as a response to an analyst’s question during the firm’s earnings call.

Chief Financial Officer Erin Brewer announced the correction as a response to an analyst’s question during the firm’s earnings call

The enquirer was heard asking in an audio snippet: ‘Could we just please clarify the EBITDA margin expansion? I think the slide say 500 basis points, but Erin, you mentioned 50, so I think it is 50, but if you could just clarify that again, please.

‘And then can you talk about the underlying assumptions, even if it is 50, between kind of the gross margin and the OpEx levers at your disposal?’

Brewer quickly responded: ‘This is Erin, and this is actually a correction from the press release. You’re correct. In my prepared remarks, I referenced 50 basis points of margin expansion. So if you look at your performance 2023 at 1.6%. You can translate that into approximately 2.1% in terms of our directional commentary in 2024.’

The rise and fall of stock prices comes as thousands of Lyft drivers plan to park their cars and picket at major US airports on Valentine’s Day in a strike for better pay and working conditions.

Delivery drivers and gig workers hold signs as they protest in front of Uber headquarters on October 12, 2022 in San Francisco, California

US airports under Valentine’s Day rideshare strike 

Labor organizers have called on Uber and Lyft drivers to refuse rides at the following airports all day, with pickets planned for 11am to 1pm local time:

Bradley International Airport in Hartford, Connecticut

Miami International Airport

Orlando International Airport

Tampa International Airport

Chicago O’Hare International Airport

Newark Liberty International Airport

Philadelphia International Airport

Pittsburgh International Airport

T.F. Green International Airport in Providence, Rhode Island

Austin-Bergstrom International Airport in Austin, Texas

Thousands of drivers for Uber, Lyft and DoorDash plan to park their cars and picket at major US airports on Valentine’s Day in a strike for better pay and working conditions (file photo)

Day-long strikes are planned today at 10 major airports, including Miami International, Newark Liberty, and Chicago O’Hare, with mid-day rallies planned outside the airports, according to Justice for App Workers, one of the groups organizing the strike.

Airport picket lines were also planned on Wednesday at airports in Philadelphia; Pittsburgh; Orlando and Tampa, Florida; Hartford, Connecticut; Austin, Texas; and Providence, Rhode Island.

But spokespersons for Lyft, Uber and DoorDash told DailyMail.com that they did not expect the strikes to have a meaningful impact on operations on Valentine’s Day.

A Lyft spokesperson likewise said: ‘Traditionally, these events have not had a meaningful impact on wait times or service levels.’

Rides were still readily available in New York and other locations in the US on Wednesday morning.

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