Lyft Inc. lost nearly one-third of its market value on Wednesday after the ride-hailing company’s second-quarter outlook and plan to increase spending on driver incentives disappointed Wall Street, highlighting investors’ willingness to dump growth stocks at the first hint of trouble.
The San Francisco-based company’s shares closed down 30% at $21.56 in New York. The decline is the stock’s steepest-ever drop in a single session, and marks a descent of 72% from the record-high of $78.29 touched in March 2019.
“There’s no room for error in this environment, but still, this selloff seems overdone,” Piper Sandler analyst Alexander Potter wrote in a note.
