Lyft shares soar thanks to typo in Q4 report

TheStreet’s J.D. Durkin brings you the biggest news of the day, including what how the market fared and what cause shares of Lyft to skyrocket.

Transcript

00:00 I'm JD Durkin reporting from the New York Stock Exchange.

00:03 Stocks were in the green to close out today's session.

00:05 The Dow closed up 150 points, the Nasdaq closed 1.3% higher, and the S&P 500 closed close

00:11 to a full percent higher.

00:13 Markets are climbing back their sharp losses from Tuesday as investors react to better

00:17 than expected corporate earnings.

00:19 So far, a majority of earnings have come in better than expected, showing a surprisingly

00:23 resilient economy in the latter half of 2023.

00:27 Investors are also looking ahead to more economic data.

00:29 We've got retail sales figures out Thursday, as well as producer prices out on Friday.

00:35 In other news, Lyft saw its stock soar after the company released its fourth quarter earnings

00:39 report, but unfortunately, ah yes, it was all due to a very large typo.

00:44 In the report, Lyft said it estimated its gross margin would grow by 500 basis points

00:49 this year, or the equivalent of 5%.

00:52 But what the company really meant to say was margins would grow by 50 basis points, just

00:57 half a percent.

00:59 Lyft saw shares skyrocket by about 60% after the company released the report, and while

01:04 the stock was still up after the correction was made because it beat Wall Street estimates,

01:07 it did lose a lot of its original buzz.

01:11 Talking to CNBC about the error, Lyft CEO David Risher said, "Look, it was a bad error,

01:17 and that's on me.

01:18 We had thousands of eyes.

01:19 We've got a process on this.

01:21 That is nuts.

01:22 It's a terrible thing.

01:23 It's an extra zero that slipped into a press release."

01:26 Lyft reported $1.22 billion in revenue for Q4, a 4% year-over-year increase.

01:32 However, despite the jump in stock price, shares of Lyft are down nearly 80% from its

01:37 2019 debut price.

01:39 That'll do it for your daily briefing.

01:41 From the floor of the New York Stock Exchange, I'm JD Durkin with the Street.

01:45 Thanks for watching.

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