Taylor Swift, Beyoncé, and layoffs raise Lyft's stock price

Lyft, a ride-sharing company, has announced that it will generate positive free cash flow for the first time in 2024, surpassing expectations for fourth-quarter profits.

As the ride-sharing company benefits from significant cost reductions, Lyft announced on Tuesday that it would generate positive free cash flow for the first time in 2024, exceeding expectations for fourth-quarter profits.

After Lyft's chief financial officer fixed a significant error in the earnings report, the company's shares saw an almost 60% increase in extended trading, but a third of those gains were later lost. In 2024, Erin Brewer had predicted that the company would grow by 500 basis points (5%) but then stated that the actual rise would be 50 basis points (0.5%), or a factor of 10. The stock increased by almost 36% in 2023. According to Lyft, rides to stadiums increased by more than 35% in 2022, primarily due to sporting events, Beyoncé's Renaissance world tour, and Taylor Swift's Eras tour. According to the CEO, the company also focused on enhancing airport pickups, which contributed to growth last year.

The corporation launched an ambitious reorganization strategy last year, involving layoffs and the removal of management tiers in an effort to increase profitability, under the direction of new CEO David Risher. In April of last year, the corporation let go of 1,200 employees, and it reduced expenses by 12% overall.