Uber Competitor's Stock Surges 60% Due to Earnings Typo Incident

US Lyft, 'Rapid Market Share Growth' Misunderstanding
Upward Trend Continues with Strong Q4 Performance

The stock price of U.S. ride-hailing company Lyft surged as much as 60% in after-hours trading.

[AFP Yonhap News]

However, this was a mishap caused by a mistake in reporting the profit margin in the earnings announcement, according to the Wall Street Journal (WSJ) on the 13th (local time).

In the earnings report released after regular trading hours that day, Lyft expected its profit margin to increase by 500 basis points (5 percentage points) this year. As this was interpreted as a sharp increase in market share while competing with Uber, Lyft's stock price soared nearly 65% in after-hours trading.

However, Lyft later clarified that the reported profit margin for this year was a typo and should have been 50 basis points (0.5 percentage points). As a result, the stock price mostly returned to its original level.

Nonetheless, with strong fourth-quarter earnings, the stock continued to rise 16% in after-hours trading. Fourth-quarter revenue increased 4% to $1.22 billion, and net loss narrowed to $26.3 million. Lyft also expects strong first-quarter results this year.

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