Lyft Inc. shares tumbled 17 percent in premarket trading on Friday as the ride-hailing company's strategy to claw back market share from rival Uber with lower fares stoked concerns about a hit to its profit margins.
At least nine analysts slashed their price targets on a stock that has widely underperformed the market this year.
The company's market capitalization was set to decline by nearly $700 million to about $3.3 billion, a far cry from the more than $24 billion valuation it commanded in its 2019 stock market listing. Uber has a valuation of more than $75 billion.
Lyft gave a disappointing adjusted core earnings forecast for the second quarter on Thursday as efforts to add more riders with price cuts take a toll on profitability, underscoring the hurdles new CEO David Risher's faces in turning around Lyft.