Lyft shares declined slightly on Wednesday morning after initially rising on Tuesday following the release of the ridesharing company’s earnings for the second quarter.
Shares in the company fell by approximately 7% after surging by 14% late on Tuesday. While analysts were impressed with the company’s revenue and its ability to avoid a forecasted loss, the earnings announcement of rival Uber may explain the reversal in direction as it reported revenue growth that outpaced that of Lyft.
Revenue for the quarter was $1.02 billion, falling in line with analysts’ expectations. While Wall Street estimated a loss of $0.01 per share, Lyft was able to post earnings of $0.16 per share. The company also revealed that it has 21.5 million active riders, outpacing the 21.1 million riders estimated by analysts.
Following the release of its Q2 earnings, Lyft posted an optimistic outlook for the third quarter. The company expects a ride-share volume growth of 20% for the upcoming quarter, along with revenue in the range of $1.13-$1.15 billion, exceeding analysts’ forecasts of $1.08 billion.