Lyft Stock Plunges Despite Positive Earnings: Are Options Traders Taking Advantage?
Lyft (NASDAQ:LYFT) has reported generally positive second-quarter earnings results, with the company posting its first-ever quarter of GAAP profitability. Despite beating revenue expectations, Lyft’s stock is down more than 16% in the afternoon session.
In the year-ago quarter, Lyft exceeded EPS and revenue targets, showing strong performance. However, the market seems to be reacting negatively to the company’s Q2 results, which fell slightly short of analyst expectations.
Options traders, on the other hand, seem to be capitalizing on the stock’s dip. According to Barchart’s options flow screener, bullish sentiment for LYFT stock outweighs bearish sentiment by around $20 million.
Lyft CEO David Risher remains optimistic about the company’s growth, highlighting record numbers in active rider count, number of rides, and driver hours. Despite the current market reaction, some traders are betting on Lyft’s stock returning to its highs.
Analysis: Despite Lyft’s positive earnings and growth metrics, the stock is facing a significant drop in value. Options traders are seizing the opportunity to buy at a discount, indicating confidence in Lyft’s long-term prospects. Investors should closely monitor Lyft’s performance in the coming quarters to see if the company can sustain its growth trajectory.