When markets run on data.
This is a classic example when markets run on data. In America, data rules.
CEO David Risher took responsibility on Wednesday for a typo that briefly created around $2 billion in market cap for Lyft. According to Risher, an “extra zero ... slipped into” a Tuesday earnings announcement and filing, helping shares appreciate more than 60% in after-hours trading. The stock bump prompted Lyft to check its numbers and correct its mistake, which pared back some of those market gains. Despite the “bad error,” the stock was up almost 35% on Wednesday, on news that the company notched its “first full year of positive free cash flow.” The typo misstated Lyft's projected margin expansion, saying one of its profit margins would grow by 500 basis points this year, instead of 50 basis points. Though Lyft’s performance fell short of its initial disclosure, bookings grew 14% and revenue rose 8% in 2023. Annual ridership swelled to an all-time peak of 40 million.