Lyft Inc.
said it would invest in the current quarter to ensure adequate driver supply and grow its ride-hailing platform, spooking investors as the spending weighs on operating profit.
The ride-hailing company on Tuesday forecast adjusted earnings before interest, taxes, depreciation and amortization, its preferred metric of financial performance, of $10 million to $20 million. The figure represents a second sequential quarterly decline and missed Wall Street expectations by more than $50 million.
Shares in Lyft fell 2.4% Tuesday and retreated 26% in late trading after it issued the outlook.
“It’s a kick-start quarter in terms of our investment across not only drivers but other things that we’re doing to invest in growth initiatives for the future, the health of the marketplace and our brand,” Lyft…
