Can The Lyft Stock Lift Itself Up After IPO Fumble? [Video]
|As you can see, the 2018 private valuation priced shares at about $55. Lyft stock began trading on the open market at over $87 per share. That fs more than a 50% mark up over the private valuation in 2018, less than 9 months ago. Keep in mind, Lyft lost $900 million last year and they have no clear plan for profitability. It would seem that Lyft and its underwriters got greedy and priced this IPO poorly.
Unfortunately, retail investors got left holding the bag. If you made an investment in the Lyft stock when it hit public markets, you lost over 13% of your principle by the end of the session
Even though the share prices recovered a bit in the first week, Lyft started its second week of trading dropping like a hot back of rocks and looks like it could be heading down towards the $55 point it was originally priced at. This whole fiasco has also made both Pinterest and Uber to lowered their IPO valuations as well.
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