Lyft gets stuck with shares falling below the IPO price on the second day of trading | Technology



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Shares of Lyft, the travel-sharing company, stopped on Monday, dropping below its IPO on its second day of trading.

Lyft became the first of a new wave of giant technology companies to open equity last Friday, selling shares at $ 72 a share. The long-awaited sale saw Lyft's share price rise to $ 78.89 on the first trading day.

But on Monday, as US markets rose, Lyft shares fell close to 12%, ending the day at $ 69.03.

New stocks often experience strong swings in their first trading days and the downturn may reverse soon. But Lyft's colleagues will be watching nervously. In the coming months, companies like Uber, Airbnb, Slack and WeWork should join the markets.

Many of these companies are highly harmful. Lyft lost $ 911 million last year, and Uber lost $ 1.8 billion. While they are growing rapidly, stock market investors have recently shown little patience for cutting-edge technology companies that do not have a clear path to profitability.

"Falling below the IPO price is an incentive for investors and Lyft," Dan Ives, Wedbush's managing director, told CNBC. "This is one of the crucial few weeks of negotiation ahead to assess Street's demand by name, since valuation and profitability remain the wild cards for technology investors."

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