Lyft stock up 17% on cost cuts after wild ride

Jake Walker, a securities lawyer at Block & Leviton, said the mistake could spark lawsuits as investors tried to recover losses. — AP

SAN FRANCISCO: Lyft beat estimates for quarterly profit and says it will generate positive free cash flow for the first time in 2024, as it cut costs and became more competitive with larger rideshare rival Uber.

The company’s shares were up 17% in late after-hours trade on Tuesday, despite a major gaffe: Lyft’s said incorrectly in a statement that a key margin metric was expected to rise by 500 basis points this year. On a conference call later, chief financial officer Erin Brewer corrected the forecast to an increase of 50 basis points.