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Exchange-traded funds related to the transportation sector were mostly lower during Friday’s session, with lift (weighted)Nasdaq: Lift), which fell after announcing Q1 sales outlook that fell short of consensus.
Lift (LIFT) is owned by 87 different exchange traded funds and forms the core of the ETFMG Travel Tech ETF.NYSEARCA: AWAY). The stock has a portfolio allocation of 5.46% ETF.com. This is the highest concentration in any ETF.
AWAY fell ~5% Insider trading on Friday after the LYFT crash ~36%
The decline also included other ETFs with relatively high LYFT stock holdings. These include the SPDR S&P Transportation ETF (XTN). -1.8%; Fidelity Electric Vehicles and Future Transportation ETF (FDRV) -2.6%; Amplify Online Retail ETF (IBUY) -3.3%.
LYFT shares fell further 36% Thursday after guiding Q1 revenue of ~$975M on a $1.1B deal. The company expects adjusted EBITDA in the range of $5M to $15M.
Announcing the results, the company’s CFO commented: “Our Q1 guidance is the result of seasonal and low prices, including less prime time. In addition, our different insurance renewal periods place a different time pressure on our P&L. We are not expecting that to become the norm to achieve competitive service levels. We are focused on driving further growth and profitability.
The poor forecast prompted Wall Street analysts to downgrade the stock:
- Wedbush Securities analyst Dan Ives downgraded the stock from Outperform to Neutral and lowered his price target on the stock to $13 from $17.
- KeyBanc Capital Markets analyst Justin Patterson also cut his rating from overweight to sector weight.
- JPMorgan analyst Doug Anmuth downgraded LYFT from overweight to neutral, lowering his price target on the stock to $15 from $29.
- Wells Fargo raised Lyft’s previous rating from overweight to equal weight, lowering its price target to $13.
- It was downgraded from buy to neutral by Citigroup, with its price target lowered to $17.
Lyft’s disappointing guidance also dragged down other stocks in the transportation sector: Saia (SAIA) -2.3%; Ryder (R) -0.5%; Hertz Global (HTC) -2.12%; Schneider National (SNDR) -0.9%.
LYFT is off Around 76% The price in 12 months.
Meanwhile, in Friday’s daily action, here’s the action in the broader indexes: SPY ( SPY ) and S&P 500 ( SP500 ). -0.3%Nasdaq Composite (COMP.IND) -1.20% and Dow Jones (DGI). +0.1%
For more analysis on the stock, see why Alpha contributor Tradevester says, “Lyft stock’s fundamentals are troubling to say the least.”
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