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Lyft shares pop, then plop, as it predicts slow and steady growth on August 8, 2023 at 9:29 pm

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Lyft made less money per active rider in the second quarter — something that might normally give investors pause. Yet, the ride-hailing giant’s stock price initially rocketed nearly 14% in after-hours trading following its Q2 2023 earnings report. The stock then shed its after-hours gains shortly before this story went live.

Lyft’s enthusiastic investors seemed to be reacting to its positive outlook for its third fiscal quarter. While Lyft’s Q2 revenue matched Wall Street estimates of $1.02 billion — a mere 2% increase from the $1 billion in revenue Lyft pulled in Q1 — the company forecasted a gain of 11% to 13%, or $1.13 billion to $1.15 billion, in Q3. According to Yahoo Finance data, analysts only expected Lyft to reach $1.09 billion next quarter.

Lyft’s revenue per rider decreased almost 5% quarter-over-quarter, a result of the ride-hailing giant’s attempt to keep fares low to compete with Uber. The upshot? Lyft saw its number of active riders increase in the second quarter to 21,487 riders, up from 19,552 in the first quarter.

But as TechCrunch noted in Q1, the question still remains as to whether this price cutting will drive enough ride volume gains to allow Lyft to return to substantial growth.

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Cost-cutting is Lyft’s friend now as well as in the future. It’s possible that Lyft’s ability to trim the fat in the second quarter, something Lyft’s new CEO David Risher promised would happen when he took over in April, also initially motivated investors.

In Q2 2023, Lyft’s net loss was $114 million, down from the $377.2 million it recorded a year ago and the $187.6 million it saw in Q1 2023. The company’s recent cost cutting reportedly included laying off 1,200 workers in the second quarter.

Lyft plans to reduce its overall cost footprint in 2023 by about $330 million annually. The firm also aims to change how it compensates employees, reducing share-based compensation in 2023 to $550 million, down from $750 million in 2022. In 2024, that’ll drop to $350 million. Those reductions could help combat dilution at the company.

Lyft’s other financials

On an adjusted basis, Lyft pulled in $41 million. That’s up from $22.7 million in Q1 2023, but still down from the adjusted EBITDA for Q2 2022 of $79.1 million. That said, Lyft beat its own estimates of $20 million to $30 million.

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Lyft closed the quarter with $638.4 million in cash and cash equivalents — an improvement from Q1’s $509.6 million.

In Q3, Lyft aims to meet an adjusted EBITDA of between $75 million and $85 million.

Lyft to make ‘significant’ cuts across ride-hailing company

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​ Lyft made less money per active rider in the second quarter — something that might normally give investors pause. Yet, the ride-hailing giant’s stock price initially rocketed nearly 14% in after-hours trading following its Q2 2023 earnings report. The stock then shed its after-hours gains shortly before this story went live. Lyft’s enthusiastic investors seemed 

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News

Terror Attacks in New Orleans and Las Vegas Linked

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The start of 2025 has been marred by two horrific terror attacks in the United States, one in New Orleans and another in Las Vegas, both occurring on New Year’s Day. These incidents have left communities reeling and have raised concerns about potential connections between the suspects involved.

In New Orleans, a truck driven by 42-year-old Shamsud-Din Jabbar plowed into a crowd celebrating on Bourbon Street, resulting in at least 15 deaths and over 30 injuries. Eyewitnesses reported that Jabbar, a U.S. Army veteran from Texas, deliberately targeted pedestrians while flying an ISIS flag from his vehicle. Following the attack, he exited the truck armed with an assault rifle and opened fire on police officers before being killed in the ensuing confrontation. Authorities discovered improvised explosive devices (IEDs) within his vehicle and in the vicinity of the attack site, further confirming the premeditated nature of this act of terrorism.

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Simultaneously, a separate incident unfolded in Las Vegas when a Tesla Cybertruck exploded outside the Trump International Hotel. The driver, identified as Matthew Livelsberger, also had a military background and was reported to have detonated the vehicle packed with firework mortars and fuel, resulting in his death and injuring seven others. Investigators are exploring whether Livelsberger and Jabbar had any prior connection, as both men served at the same military base at different times.

While the FBI has confirmed that they are investigating both attacks as acts of terrorism, they have not established a definitive link between the two incidents. However, similarities in their execution—both suspects rented vehicles from the same company—have prompted further scrutiny into their backgrounds and any potential accomplices.

As investigations continue, authorities are urging anyone with information about either suspect to come forward. The tragic events have sparked discussions about security measures in public spaces, particularly as cities prepare for large gatherings in the coming months.

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Politics

Donald Trump Named TIME’s 2024 Person of the Year

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Donald Trump has been selected as TIME magazine’s Person of the Year for 2024, marking his second time receiving this distinction. The former president, who won a historic comeback victory in the 2024 election, was chosen for his significant impact on global affairs and American politics.

TIME editor-in-chief Sam Jacobs explained the decision, citing Trump’s “comeback of historic proportions,” his role in driving “a once-in-a-generation political realignment,” and his reshaping of both the American presidency and the country’s global role. This recognition comes after Trump’s unprecedented achievement of reclaiming the White House after losing reelection four years earlier.

The selection process involved an extensive interview with Trump at Mar-a-Lago in November, covering a wide range of topics including the economy, foreign policy, and his plans for a second term. Notably, TIME took the unprecedented step of publishing a comprehensive fact-check alongside the interview transcript, examining 15 distinct assertions made by Trump.

Trump’s relationship with TIME has been tumultuous over the years. While he expressed honor at receiving the title in 2016, he has also criticized the magazine’s selections and even claimed he refused a potential Person of the Year offer in 2017. Despite this, Trump participated in the process this year, granting TIME access for an in-depth interview.

To commemorate the announcement, Trump rang the opening bell at the New York Stock Exchange (NYSE). This event marked a significant moment in Trump’s career, as it was his first time participating in this Wall Street tradition.

Trump’s selection as Person of the Year reflects his continued influence on American politics and his ability to reshape the political landscape. As the country prepares for his return to the White House, all eyes will be on how Trump’s second term might further impact both domestic and international affairs.

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Film Industry

Jay-Z Denies Allegations Amid Lawsuit

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Jay-Z, the renowned rapper and music mogul, faces serious allegations in a recently amended civil lawsuit. According to ABC News and NBC News, the suit accuses him and Sean “Diddy” Combs of raping a 13-year-old girl at an MTV Video Music Awards after-party in 2000.

The lawsuit, initially filed in October 2024, was updated on Sunday to include Jay-Z as a defendant alongside Combs. The plaintiff, identified only as “Jane Doe,” claims she was assaulted after being driven to the party following the awards show.

Jay-Z, whose real name is Shawn Carter, vehemently denies the allegations. He released a statement on X calling the lawsuit a “blackmail attempt” and questioning why it was filed as a civil case rather than a criminal one. The rapper expressed concern about the impact on his family, stating he and his wife Beyoncé would need to discuss the situation with their children.

Combs, who is currently in federal custody on separate charges, has also denied the accusations through his attorneys. The lawsuit alleges that an unidentified female celebrity was present during the incident but did not intervene.

The case has garnered significant media attention, with both artists’ reputations at stake. As the legal process unfolds, the music industry and public await further developments in this high-profile case.

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