Lyft tanks 20% on Q1 results: 'it's a super cheap stock and we'd be buying'

Lyft Inc (NASDAQ: LYFT) on Tuesday reported better-than-expected results for its fiscal first quarter. Shares still tanked more than 20% in extended trading on a slight miss on number of riders.

Key takeaways from Lyft’s Q1 results

• Lost $196.9 million in fiscal Q1 versus the year-ago figure of $427.3 million.
• Per-share loss of 57 cents was much narrower than last year’s $1.31.
• Adjusted EPS printed at 7 cents, as per the earnings press release.
• At $875.6 million, revenue noted a 44% year-over-year increase.
• Consensus was for 7 cents of per-share loss (adj) on $848.9 million in revenue.

Lyft had 17.8 million riders in the first quarter (up 32%) but analysts had forecast a bit higher 17.9 million riders. Its per-rider revenue of $49.18, however, was better-than-expected. Last week, Lyft restated its financials for 2021, citing accounting error.

Dan Ives reacts to Lyft’s earnings report

The after-hours price action was particularly harsh considering ride-hailing volumes in Q1 hit a new COVID high. On CNBC’s “Closing Bell”, Wedbush Securities’ Dan Ives said Lyft was a stock worth buying.

Ives agrees that driver shortage was a major headwind for Lyft but said that was now coming to an end. He prefers Lyft over Uber as the former is a pure-play, domestic name.