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Why Aphria, Spotify, and Lyft Slumped Today — The Motley Fool



The actions of EE. UU They returned some of their recent earnings on Monday when the first quarter corporate earnings season began in earnest. Both of them Dow Jones Industrial Average Y S & P 500 incurred modest losses of around 0.1%.

But to some individual actions it was even worse. Afria (NYSE: APHA) withered after posting weak quarterly results, Spotify (NYSE: SPOT) it jumped a while after the reports of a potential competitor entering its niche, and Lyft (NASDAQ: LYFT) fell as a result of remembering the electric bicycles of three large markets.

The disappointing neighborhood of Afria.

Shares of Aphria fell 14.9% after the Canadian cannabis company published fiscal results weaker than expected in the third quarter of 2019. Revenue increased 617% year-on-year to Can $ 73.6 million ($ 55.3 million), which translated into a large net loss of CA $ 108.2 million ($ 81.3 million), or CA $ 0.43 per share ($ 0.32).

Stock market graphs on a colorful LED display indicating losses

Image source: Getty Images.

Aphria's losses were amplified by the large depreciation charges not related to the purchase of LATAM assets last September. Excluding those charges, its net loss would have been CA $ 50.2 million, or CA $ 0.20 per share. But that was still far below the analysts' consensus prediction earnings of CA $ 0.03 per share on revenues of CA $ 85.2 million.

The president of Aphria and interim CEO Irwin Simon said the company is taking "decisive measures to increase efficiency", including investments in automation and packaging, in addition to adjusting its production to new growth methods. But, meanwhile, due to the heavy losses of Aphria, it is obvious that the market is not satisfied.

Spotify faces more competition

Spotify's shares fell 4.4% after Billboard reported Amazon.com (NASDAQ: AMZN) is preparing to launch a free version with advertising support for its music streaming service.

Citing "familiar sources to the plan". Billboard says Amazon service could be launched as soon as next week, taking advantage of the tens of millions of its smart Echo speakers sold to help the proliferation of the free service. The move would mark an exit from Amazon's previous strategy of offering just two music-free music services: Prime Music as part of its Amazon Prime subscriptions, and Amazon Music Unlimited for a fixed monthly fee.

If something is clear, it is that Amazon has an attractive group of listeners to address. Spotify ended 2018 with a total of 207 million active monthly users, including 116 million users of its free level.

Lyft brakes on bicycle

Finally, Lyft shares fell 6.3% after the public transport network specialist recently removed electric bicycles from their fleets in New York, Washington and San Francisco after "a small number" of complaints about "force of braking stronger than expected on the front wheel. "

But some investors fear that the problem may be bigger than Lyft is allowing; a seperation New York Times The report (may require subscription) says that dozens of people have been injured with bicycles in recent months.

Lyft, on the other hand, is replacing the retired motorcycles with non-motorized models in the meantime. But if these concerns continue to grow, it could hurt the company's expansion plans, which include investing $ 100 million for more than triple the size of its New York Citi bicycle fleet to only 40,000 bicycles by 2024.


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