Lyft share price falls 11% after notable IPO debut
The ridesharing app's stock has fallen after a spectacular start on Wall Street.
Lyft share price is down after an impressive debut on Wall Street last week. After launching with a stock price of $87, the rideshare app has now fallen to $70 a share.
Why has Lyft stock fallen?
Lyft’s initial public offering( IPO) dropped after a much-hyped start in the US stock market. The ridesharing company was the first of highly anticipated 2019 IPO’s. However, after its launch, the corporation’s stock fell because of investors having second thoughts about buying the stock. The company is also facing bad publicity after ridesharing drivers went on strike for higher pay in Los Angeles after the IPO launched. In addition to those issues, the advent of self-driving cars from Google could cause more uncertainty for the ridesharing app.
Lyft’s IPO is also declining because the company hasn’t been profitable yet. Though the ridesharing app made $2.2 billion in revenue in 2018,the corporation also had $911 million in losses as well.
What does Lyft’s IPO decline mean for other unicorn IPO’s?
Lyft’s stock underperformance after being valued at $24 billion could be unfortunate signs for other unicorn IPO’s valued at over $1 billion. Tom White, analyst at D.A. Davidson, said that the excitement of Lyft’s stock fell after the first day of trading. The stock has also been rated as neutral amid lukewarm Wall Street expectations.
‘Feels like just some of the faster money exiting the stock following the solid first-day pop. LYFT also caught a Neutral rated initiation today which probably isn’t helping either,’ said White.
While Lyft's IPO is struggling, investors will be watching its rival Uber when it goes public later this year to see if tech startups can succeed on Wall Street before turning a profit.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
