Reuters Lyft beat estimates for quarterly profit on Tuesday and said it would generate positive free cash flow for the first time in 2024, as it cut costs and became more competitive with larger rideshare rival Uber.

Shares were up 17 in late afterhours trade, despite a major gaffe Lyft39;s said incorrectly in a statement that a key margin metric was expected to rise by 500 basis points this year. On a conference call later, Chief Financial Officer Erin Brewer corrected the forecast to an increase of 50 basis points.

Stock had surged 67 based on the statement and lost most of the gains after the correction.

Roughly 47.8 million Lyft shares changed hands in afterhours activity, according to Nasdaq. That surpassed the stock39;s average daily volume of about 13.6 million shares in the last 50 regular trading sessions, according to LSEG data.

The surge included a significant amount of short covering from hedge funds who are heavily involved in shorting this name, said Adam Ballantyne, senior analyst at Cambiar Investors, which holds Uber stock.

Roughly 13 of Lyft39;s free float stock were shorted as of Jan. 31, verus a 3 short interest in Uber.

Jake Walker, a securities lawyer at Block Leviton, said the mistake could spark lawsuits as investors tried to recover losses.

Still, as share gains settled late evening, investors focused on CEO David Risher39;s efforts to cut costs.

Risher, who took over the reins at Lyft less than a year ago, has driven aggressive…