Lyft slips below IPO price on second day of trading

Lyft slips below IPO price on second day of trading

Shares of Lyft crashed below their IPO price in just their second day of trading on Monday. Analysts blamed the slump on lingering questions about how loss-making Lyft will become profitable. The shares had opened at $87.24 in their Nasdaq debut on Friday, up 21 percent from their IPO price, valuing Lyft at $22.2 billion. The offering was 20 times oversubscribed.

KCooper
KCooper
John Curtin
John Curtin 1 year

The IPO price initially set seems way too high for a company trying to compete in a market which others are not delivering fantastic revenue

Jarret Durst
Jarret Durst 1 year

True, but the average investor should always expect a companies IPO to go down. You don’t have enough information to dictate the worth of the company and the company has not built enough intrinsic value yet.

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