Lyft Inc (NASDAQ: LYFT) is trading meaningfully up in extended hours after cofounder Logan Green said he would step down as the company’s chief executive next month.
Analyst reacts to the news on CNBC
On April 17th, David Risher will replace him as the CEO of the ride-hailing company.
He has previously served as a retail executive at Amazon.com Inc. Reacting to the announcement on CNBC’s “Closing Bell: Overtime”, Wedbush Securities’ Dan Ives said:
You do need someone from the outside. Lyft will have to look at strategic options and different parts of the business. I think fresh eyes is what investors wanted to see after which has been an absolute disaster.
Last month, the Nasdaq-listed firm issued disappointing guidance for its current financial quarter (source). Versus their year-to-date high, Lyft shares are down more than 45% at writing.
President Zimmer is stepping down as well
Green will remain with Lyft as its chair of the board. Also on Monday, cofounder John Zimmer confirmed plans of stepping down as the company’s president as well.
On June 30th, he’ll exit the said role and become vice chair of the board at Lyft. Wedbush’s Dan Ives added:
This has been a disaster especially in the last three to four months. I think investors have been frustrated and they’ll view it a positive in terms of at least some action that can move this forward after what’s been an absolute nightmare.
His $13 price objective on Lyft shares suggest about a 30% upside on top of the after-hours price action.
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