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Monday, April 1, 2019

Lyft stock is tumbling after a lukewarm market debut last week

Shares of Lyft tumbled Monday, trading more than 4 percent down premarket, after a mild market debut last week.

The ride-hailing company is the first of a heavyweight class of tech companies to go public this year. The stock jumped as much as 23 percent in its opening day Friday before settling to a 9 percent gain.

Lyft's market debut offers something of a gut check for Uber, Slack and Pinterest — all tech behemoths set to IPO this year. The company lost more than $900 million in 2018, according to its regulatory filings, and carries "too many big assumptions" for success according to analysts at Guggenheim.

Shares of Lyft were set to open below $79 Monday, almost $10 shy of its Friday intraday high of $88.60. The stock sold at an initial IPO price of $72 in an oversubscribed offering.

WATCH: Here's what Uber can learn from Lyft's IPO

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