Lyft said rides booked through its platform jumped 26% in May
Published by Terence Mahier | Source

Lyft issued a more optimistic forecast for Q2 after saying rides on its platform rose 26% in May from the previous month 🚕

The company says rides have increased week-over-week for 7 straight weeks since April, even though the May figure was still 70% below last year levels 😅

As the market is betting on economies reopening, Lyft is a good proxy for evaluating if things are coming back to "normal". The stock is up 100% since its lowest point during the pandemic but yet -25% compared to Jan. 🤔

Markets have proven to be disconnected from the present reality and focused on the future. Will Lyft come back to its pre-COVID level? 🔥

Extra Insights

Lyft now expects its Q2 loss will not exceed $325M compared to a previous forecast of -$360M based on April ride trends. Everything is relative, right? 😏

Demand has begun to rebound and the market could focus on the future business potential. If you think COVID-19 is behind us and that ridesharing habits will come back to its initial levels, then it's a good time to buy as the market as a whole is betting on a "V-shaped" recovery. Otherwise, you know what to do 📉

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- Newspill Team 💊
03-Jun 09:12 (Eastern Time)

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