E14 (Bonus): Lyft's earnings & what the heck are basis points anyway?

Last night’s Lyft $LYFT earnings included an extra zero where there wasn’t one and the market reaction was wild! Turns out there’s a big difference between 500 basis points and 50! What are basis points? How do they differ from percentage points? We help you understand margins, and why thinking in basis points is an upgrade over percentages. (Shares of Lyft $LYFT soared more than 60 per cent on Tuesday before falling back sharply, after an error in the ride-hailing company’s quarterly earnings release exaggerated the outlook for margin growth in 2024 by 10 times. The company reported that it would improve adjusted earnings margins by 500 basis points, or 5 percentage points, in 2024 compared with the previous year) --- Fed up with the stock market giving you a hard time? - Invest like seasoned pros with over 40 years in the game - Discover the world's leading companies - Sharpen your best investing practices and ditch the worst - Learn how to start investing - Essential investing principles to boost your returns --- investing in stocks for beginners, stock trading for beginners, stocks and shares for beginners, investing 101, learn how to invest, stock market for dummies --- Follow us on X at @7lukehallard and @7flyingplatypus