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Wall Street Breakfast

Lyft’s earnings typo sparks wild after-hours ride

Wall Street Breakfast

Seeking Alpha

Business News, News, Business, Investing

4.11K Ratings

🗓️ 14 February 2024

⏱️ 7 minutes

🧾️ Download transcript

Summary

Lyft shares go on wild after-hours ride following earnings typo. (00:27) Coca-Cola (KO) among suitors for healthy soda brand Poppi - report. (01:45) Airbnb (ABNB) posts revenue beat, $6B buyback announcement. (03:01)

Episode transcripts seekingalpha.com/wsb.

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Transcript

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0:00.0

Welcome to See King Alpha's Wall Street breakfast, where we cover the top news for investors every morning.

0:08.0

Good morning. Today is Wednesday, February 14th. I'm Julie Morgan.

0:13.0

Lift soars on false hopes, but is quickly brought back down to earth.

0:18.0

Coca-Cola could be getting in the business of prebiotic soda,

0:22.0

and AirB&B announces a $6 billion buyback.

0:27.0

Sorry, it was a typo.

0:29.0

Prompted by a press release discrepancy that was quickly corrected, shares of lift soared more

0:34.4

than 60% after the bell Tuesday before falling back in a matter of minutes.

0:39.8

The company reported earnings post market and traders focused on forward guidance that included a prediction of positive free cash flow in 2024.

0:49.0

But the press release issued at 405 PM Eastern Time included guidance of adjusted EBITDA margin expansion of approximately 500 basis points year over year.

1:00.0

But soon social media posts noted that the CFO of the company had corrected that to 50 basis points.

1:06.8

Algorithmic trading could have exacerbated the post market move, keying in on the 500 basis point margin forecast lift as short interest of 13.47 percent we told you earlier this week on Wall Street lunch with

1:20.8

Kim Khan that Uber and Lyft drivers are planning to stop

1:24.3

driving across major US and Canadian cities on Valentine's Day today to

1:30.1

protest declining pay driver safety and deactivations.

1:34.7

Pre-market lift is up more than 16%.

1:38.3

I got to say this was an interesting story to watch it play out on social media, especially on X yesterday.

1:45.7

Coca-Cola is reportedly pursuing a purchase of Poppy.

1:49.3

According to a Bloomberg report on Tuesday, which cited people familiar with the matter.

1:54.1

Coca-Cola is just one of the suitors pursuing an acquisition of the company.

1:58.6

No transaction has been finalized and a deal is not imminent.

2:02.6

The so-called Healthy Soda Company

...

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