Lyft Shares Drop Despite CEO's Confidence in Consumer Strength

Lyft CEO David Risher stood by the company's fourth-quarter performance Wednesday, emphasizing robust consumer demand even as the stock fell sharply. In an interview with CNBC, Risher pointed to record profits and over $1 billion in generated cash as evidence that the company's strategy is effective. "We love what we're seeing," Risher stated, "and there's really no softness on the consumer side at all. " Despite this assurance, Lyft shares closed down 15% after ridership metrics failed to meet analyst forecasts.

The company reported 29. 2 million active riders for the quarter, slightly below expectations, and total rides also came in under estimates. Looking ahead, Lyft provided first-quarter bookings guidance that was slightly below consensus. Risher identified new teen accounts and the recent acquisition of European service FreeNow as key areas for growth.

He also detailed the company's autonomous vehicle plans, noting partnerships with Waymo and Baidu to introduce self-driving cars in cities like Nashville later this year. While adjusted revenue met expectations and earnings per share beat estimates, both figures involved several accounting adjustments. Risher concluded by highlighting a successful Super Bowl period, where Lyft reported significant volume growth and improved service metrics compared to rivals.

Source: CNBC