Lyft Inc. (NASDAQ:LYFT) CEO David Risher has shouldered the blame for a significant error in the company’s fourth-quarter earnings report, which led to a massive stock surge before a correction was issued.
What Happened: Risher admitted to the error in the earnings report during an interview with CNBC’s “Squawk Box,” calling it “super frustrating” for the entire team, CNBC reported. The report, released on Tuesday, initially indicated a 500 basis point (5%) margin expansion for Lyft in 2024, causing the stock to soar by over 60%.
However, during the quarterly investor call, Lyft CFO Erin Brewer clarified that the actual increase would be 50 basis points (0.5%). This correction led to a significant drop in the stock’s value, equivalent to over $2 billion in market cap.
“Look, it was a bad error, and that’s on me,” Risher admitted.
"It's a terrible thing. It is an extra zero that slipped into a press release."
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