What Happened:
Shares of Ride sharing service Lyft (NASDAQ: LYFT) jumped 5.02% in the pre-market session after it named David Risher, a former Amazon and Microsoft executive and co-founder of Worldreader, as its new CEO effective April 17. Risher, who joined Lyft's board in July 2021, helped Amazon grow from a small online bookstore to a retail giant and received a permanent thank-you from Jeff Bezos on its website. Logan Green and John Zimmer, who started the company and held the positions of CEO and President, will shift to the board as Chair and Vice Chair, giving up their executive responsibilities, effective April 17 and June 30, respectively.
What is the market telling us:
Lyft's shares are somewhat volatile and over the last year have had 68 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Lyft is down 9.08% since the beginning of the year, and at $10.11 per share it is trading 74.8% below its 52-week high of $40.16 from March 2022. Investors who bought $1,000 worth of Lyft's shares at the IPO in March 2019 would now be looking at an investment worth $129.14.
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