Lyft shares were out of gas in their second day as a publicly traded company.The San Francisco-based ride-hailing company’s stock tumbled as much as 11.7 percent Monday — falling below its $72 a share initial public offering price — as investors rushed for the exit of the money-losing company.
“The Lyft IPO has traded poorly,” said Kathleen Smith, manager of IPO ETFs at IPO research firm Renaissance Capital. “It was offered at a high valuation and investors are not sure what these money-losing unicorns are worth.”
In their debut on the Nasdaq Friday, Lyft shares had surged 21 percent — briefly flirting with a $30 billion valuation in early trades — but lost steam to end up a more modest 8.7 percent.
The offering was oversubscribed and priced above its expected $62 to $68 a share range as Wall Street initially looked past Lyft’s massive $911 million loss in 2018 for a chance to get in on the hotly anticipated IPO.