Lyft Is Becoming Lean and Mean, So Why Is the Stock Dropping ?, Crypto Coins News
Ride-share play Lyft is taking it on the chin in today’s market, falling nearly 3% while the broader stock market is managing to eek out gains. The Dow Jones and Nasdaq finished the day in the green after the Fed decided to keep interest rates status quo and earnings season continues to deliver impressive results.
The rising tide isn’t lifting the Lyft boat, however, as investors choose to instead focus on the company cost-cutting plan that will reportedly result in job cuts affecting nearly 2% of its workforce . Lyft is looking to become leaner and meaner as it sets its sights on profitability by year-end .
So why are investors punishing the stock for a good thing? They may be missing the forest from the trees. Lyft’s layoffs were selective, affecting sales and marketing divisions. The company still plans on hiring 1, – plus employees this year, The Wall Street Journal Reports .