Shares in Lyft, the car share company, stopped on Monday, falling below their initial public offer (IPO) on their second day of trading.
Lyft was the first of a new wave of giant technology companies to go public last Friday, selling shares for $ 72 per piece. Rapidly anticipated sales saw Lyft share a price jump to $ 78.89 on the first day of trading.
But on Monday, as US markets rose, Love's shares fell close to 12%, ending the day at $ 69.03.
New stocks often experience sharp swings in their first days of trading and the fall could soon be back. But Lyft's peers will be watching our nervous. Over the coming months, all companies including Lymt, Uber, Airbnb, Pinterest, Slack and WeWork are expected to join the markets.
Many of these companies make a big loss. Lyft lost $ 911m last year, Uber lost $ 1.8bn. Although they grow rapidly, investors in the stock market have recently shown some patience to hot technology companies that do not have a clear path to profitability.
“Falling below its IPO price punches a gut into investors and Lout,” said Wedbush managing director, Dan Ives, to CNBC. “This is a few key weeks of advance trading to measure Street demand for the name as a valuation and profitability remains wild cards for technology investors.” T