Lyft's Share Buyback Plan Boosts Stock by 17%

Published 3 hours agoLYFT

Lyft's Share Buyback Plan Boosts Stock by 17%

Lyft's recent announcement of an amplified share buyback program has generated positive momentum for its stock, with shares climbing about 17% in early trading. The company has increased its stock buyback program to $750 million, with intentions to repurchase $500 million worth of shares over the coming year. This decision echoes the proposal from activist investor Engine Capital, which had previously advocated for an accelerated buyback as well as exploring strategic alternatives, potentially including a sale, Reuters reported.

In terms of financial performance, Lyft posted first-quarter earnings per share of 24 cents, exceeding the 19 cents anticipated by analysts. Revenues, however, came in slightly below expectations at $1.45 billion, missing the forecasted $1.47 billion. Despite this, the market responded positively to the earnings report and buyback news.

Lyft is also actively pursuing growth initiatives in smaller, car-dependent markets, such as Indianapolis, where rides surged by 37% in the first quarter. This strategic push into areas with limited public transport options is part of Lyft's efforts to capture growth in emerging markets, alongside efforts to enhance shareholder value through its buyback program.

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