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.

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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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