Lyft shares skyrocketed 67% in the previous session due to an error; did you know what it was?

Lyft share price: Shares of Lyft, an American company offering mobility as a service, ride-hailing, and hire vehicles, among others, witnessed a wild ride in the US market on Tuesday, February 13, after a typo in its earnings release.

The stock of the US-listed company skyrocketed as much as 67 per cent as investors cheered the company's margin growth forecast, which, by mistake, was reported as a 5 per cent increase instead of 0.5 per cent. 

However, the stock corrected after the company's CFO clarified in the earnings call that the company's margin forecast was misstated. 

During the extended hours, the stock price of the company increased by $12 to $20. The shares eventually ended at $14.05, as reported by Zee Business Research.

Other details 

Lyft beat estimates for quarterly profit and said it would generate positive free cash flow for the first time in 2024 as it cut costs and became more competitive with larger rideshare rival Uber. Further, Lyft retained its 29 per cent market share in the fourth quarter, fending off Uber by keeping prices competitive, according to market analysis firm YipitData.

Though Uber dominates the industry, analysts believe Lyft will remain a strong second player.

Lyft's gross bookings grew 17 per cent to $3.7 billion in the fourth quarter. It expects between $3.5 billion and $3.6 billion in gross bookings in the March quarter, above analysts' estimates of $3.45 billion.

With inputs from Reuters