Lyft Shares Rise On Optimistic Forecast by Company

Shares of Lyft were heading higher after the company’s executives revealed that the company would hit a profit by the end of 2021.

Considering that this is a year earlier than what analysts had expected, the news had Wall Street cheering. Shares of Lyft surged as much as 9% this past Tuesday on the news.

According to the company’s founders who were onstage at a Wall Street Journal technology conference in California, Lyft will hit this goal because it is focused on profitable growth over scaling at all costs.

“We’ve never laid out our path to profitability, and we know that’s a question on a lot of investors’ minds,” said Logan Green, the chief executive officer and co-founder. “We’re going to be profitable on an adjusted Ebidta basis a year before analysts expect us to. We’re going to hit this target in Q4 2021.”

The news even helped shares of rival Uber head higher with a gain of roughly 4%.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.