UK markets closed
  • NIKKEI 225

    +65.47 (+0.24%)

    -77.11 (-0.40%)

    -2.79 (-3.63%)

    +1.70 (+0.10%)
  • DOW

    -307.98 (-0.91%)

    -158.23 (-1.12%)
  • CMC Crypto 200

    -1.67 (-0.41%)
  • ^IXIC

    -193.44 (-1.72%)
  • ^FTAS

    -28.73 (-0.69%)

Lyft (LYFT) to Stop Recruiting Employees Through Year-End

Inflation in the United States remains sky-high, implying that market volatility is still rampant. To tame the red-hot inflation, the Fed has hiked interest rates 300 basis points so far this year. The central bank further vowed to hike interest rates to drag down inflation to its 2% target at best by 2025. Soaring interest rates will continue to increase the cost of borrowing, which in turn, will persistently affect consumer spending.

Due to the rising interest rate-induced economic slowdown, Lyft LYFT reportedly decided to stop hiring employees through the year-end. Per LYFT spokeswoman Ashley Adams, “Like many other companies navigating an uncertain economy, we are pausing hiring for all U.S.-based roles through the end of the year.”

LYFT started the process of informing prospective candidates about the decision to freeze hiring. The economic downturn-induced hiring freeze is a further setback for Lyft, shares of which have declined 66.2% year to date.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

In May, rival Uber Technologies UBER had  announced  the decision to reduce spending and slow down hiring. To cater to the long-term interests of its shareholders, Uber aims to make its business model leaner by cutting down on expenses pertaining to marketing and incentives.

Zacks Rank & Stock to Consider

Lyft currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the Zacks Internet-Services industry is Baidu BIDU, currently carrying a Zacks Rank #2 (Buy). BIDU offers a Chinese language search platform with a network of third-party websites and software applications.

At Baidu, the Zacks Consensus Estimate for current-year earnings has been revised 16.2% upward over the past 60 days. BIDU has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 58.1%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Lyft, Inc. (LYFT) : Free Stock Analysis Report
Baidu, Inc. (BIDU) : Free Stock Analysis Report
Uber Technologies, Inc. (UBER) : Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research