Lyft (LYFT, $10.31) shares undergo the worst plunge ever, on outlook and rating downgrades

Lyft shares ended Friday trading at $10.31, slumping -36.4% -- the sharpest percent decline ever. At least eight analysts downgraded the ride-hailing company's stock following its earnings report (according to FactSet data).

While Lyft’s Q4 adjusted earnings of $126.7 million beat Street forecasts, it disappointed on guidance. According to the company’s statement, it likely won't achieve its earlier goals of $1 billion in adjusted earnings and $700 million in free-cash flow by 2024.

Wedbush analyst Daniel Ives slashed his rating on Lyft shares to neutral from outperform and cut his price target to $13 from $17. “In 22 years on the Street as a tech analyst we have listened to 1,000s of conference calls with many highs and lows”, Ives wrote. “Last night’s Lyft call was a Top 3 worst call we have ever heard as in our opinion as management is trying to play darts blindfolded with the expense structure going forward and gave an Ebitda outlook which was a debacle for the ages.”

Ives also mentioned that  Lyft’s business model faces an “Everest-like uphill climb” to show growth with profitability, and that it is in a “stark contrast to big brother Uber which is moving in the opposite direction of balanced fundamentals.”

JPMorgan’s Doug Anmuth lowered his rating to neutral  from outperform, while almost halving his target price to $15 (from $29). Anmuth mentioned that while the U.S. ride-share market was recovering from the pandemic, “Lyft is not.” He also noted that increasing  driver supply meant less opportunity for surge pricing, and therefore  headwind to revenue growth.

D.A. Davidson’s Tom White lowered his rating on Lyft’s stock to neutral from buy and cut his price target to $12.50 from $19, citing his growing concerns about the company’s   ability to “regain/rebuild its prior category position (or how much it might cost to do so).”

Lyft shares ended Friday trading at $10.31, slumping -36.4% -- the sharpest percent decline ever. At least eight analysts downgraded the ride-hailing stock following its earnings report (according to FactSet data).

While Lyft’s Q4 adjusted earnings of $126.7 million beat Street forecasts, it disappointed on guidance. According to the company’s statement, it likely won't achieve its earlier goals of $1 billion in adjusted earnings and $700 million in free-cash flow by 2024.

Wedbush analyst Daniel Ives slashed his rating on Lyft shares to neutral from outperform and cut his price target to $13 from $17. “In 22 years on the Street as a tech analyst we have listened to 1,000s of conference calls with many highs and lows”, Ives wrote. “Last night’s Lyft call was a Top 3 worst call we have ever heard as in our opinion as management is trying to play darts blindfolded with the expense structure going forward and gave an Ebitda outlook which was a debacle for the ages.”

Ives also mentioned that  Lyft’s business model faces an “Everest-like uphill climb” to show growth with profitability, and that it is in a “stark contrast to big brother Uber which is moving in the opposite direction of balanced fundamentals.”

JPMorgan’s Doug Anmuth lowered his rating to neutral  from outperform, while almost halving his target price to $15 (from $29). Anmuth mentioned that while the U.S. ride-share market was recovering from the pandemic, “Lyft is not.” He also noted that increasing  driver supply meant less opportunity for surge pricing, and therefore  headwind to revenue growth.

D.A. Davidson’s Tom White lowered his rating on Lyft’s stock to neutral from buy and cut his price target to $12.50 from $19, citing his growing concerns about the company’s   ability to “regain/rebuild its prior category position (or how much it might cost to do so).”

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