01 April 2019 - 21:28A driver rides his car in front of the Lyft drivers hub in Los Angeles, California, the US, March 29 2019. Picture: APU GOMES/ AFP
Bengaluru — Shares of Lyft crashed through the ride-hailing company’s initial public offering price on just their second day of trading, tumbling as much as 10.5% and matching the speed at which Facebook gave up its IPO price following its botched offering nearly seven years ago.On Friday, Lyft’s shares opened at $87.24, popping 21.1% in their debut on the Nasdaq stock exchange, but later pared gains to close up 8.74% at $78.29. That valued the company at $22.
Come Monday, however, that support was no where to be found and it opened at $36.53 and would not regain its IPO price for 14 months. Whether Lyft can deliver the turnaround Facebook managed is a top question for investors. After hitting a life-time low about three months after its IPO, Facebook shares have gained more than 800% to become the “F” in the vaunted “Fang” group of tech high flyers. It currently trades at $168.50.in 2017, despite revenue doubling in 2018 to $2.16bnBrokerage Guggenheim Securities started coverage on Lyft with a “neutral” rating, saying there is a lack of visibility on the path to profitability.
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