Jan Care*

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:

Need a Lyft? The stock price of ride-hailing company ends lower following last week’s IPO

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.

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.

As we suggested here

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. 

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

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Perhaps it wasn’t an IPO failure from the company’s pre=IPO shareholder’s perspective