Exchange traded funds tied to transport sector were mostly down during Friday's intraday session, weighed down by Lyft ( NASDAQ: LYFT ), which plunged after announcing a Q1 sales outlook that fell short of consensus.
Lyft ( LYFT ) is owned by 87 different exchange traded funds and forms a major part of ETFMG Travel Tech ETF ( NYSEARCA: AWAY ). where the stock sits at a portfolio allocation of 5.46% as per ETF.com . This is the highest concentration in any ETF.
AWAY plunged ~5% in Friday's intraday trading after LYFT crashed ~36%.
The decline also included other ETFs that have a relatively high concentration of LYFT stock. These include SPDR S&P Transportation ETF ( XTN ) -1.8% ; Fidelity Electric Vehicles and Future Transportation ETF ( FDRV ) -2.6% ; Amplify Online Retail ETF ( IBUY ) -3.3% .
LYFT shares plunged more than 36% after guiding Q1 revenue of ~$975M vs. consensus of $1.1B on Thursday. The company also expects adjusted EBITDA in the range of $5M to $15M.
In announcing the results, the firm's CFO commented: “Our Q1 guidance is the result of seasonality and lower prices, including less Prime Time. Additionally, our different insurance renewal timing puts differently timed pressure on our P&L. We are not waiting for that to normalize to achieve competitive service levels. We are focused on driving greater growth and profitability.”
The weak forecast prompted Wall Street analyst to downgrade the stock:
- Wedbush Securities analyst Dan Ives lowered his rating the stock to Neutral from Outperform and lowered his per-share price target to $13 from $17.
- KeyBanc Capital Markets analyst Justin Patterson also cut his rating to Sector Weight from Overweight.
- JPMorgan analyst Doug Anmuth downgraded LYFT to Neutral from Overweight and slashed his per-share price target to $15 from $29.
- Wells Fargo downgraded the previous rating for Lyft from Overweight to Equal-Weight, price target lowered to $13.
- Downgraded to Neutral from buy at Citigroup, with price target lowered to $17.
Lyft's disappointing guidance also dragged down other stocks in the transport sector: Saia ( SAIA ) -2.3% ; Ryder ( R ) -0.5% ; Hertz Global ( HTZ ) -2.12% ; Schneider National ( SNDR ) -0.9% .
LYFT lost around 76% of its value over a period of 12 months.
Meanwhile, in Friday's intraday action, here's the action in the broader indicies: SPY ( SPY ) and S&P 500 ( SP500 ) -0.3% , Nasdaq Composite ( COMP.IND ) -1.20% and Dow Jones ( DJI ) +0.1%.
For more analysis on the stock, see why Seeking Alpha contributor Tradevestor says, " Lyft's stock fundamentals are worrisome to say the least ."
For further details see:
Crash in Lyft's stock drags down these travel tech ETFs