Well, well, well, just look what’s happened!
That overhyped and touted IPO by Lyft is now in the doldrums. There’s this piece here by USA Today:
[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]Need a Lyft? The stock price of ride-hailing company ends lower following last week’s IPO[/perfectpullquote]
According to USA Today on Monday the stock – launched at a mouth-watering $72 was trading down at $69—a fall of $3 from its IPO price, but $19.6 down from its peak of $88.6.[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””] The enthusiasm for Lyft’s new, publicly traded shares faded on Monday. The stock price of the ride-hailing service dropped nearly 12 percent, closing out the day below its initial public offering price of $72 a share last week. [/perfectpullquote]
As we suggested here[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]Lyft’s backers have sunk $5.1 billion to date into a venture that—seven years in—is still loss making and making sales of $2.2 billion. One can understand why Lyft’s backers might want to suck in the dumb money via an initial public offering while they bail out. [/perfectpullquote]
After the hype investors are beginning to wake up and see the challenges facing the company. It’s not looking that good for Uber now is it?
It maybe that’ll be a case of uber-stretch.
(OK, you can groan mightily on that one.)
*Slang for America’s medical taxi