After optimistic exit, Lyft falls in the bag

After optimistic exit, Lyft falls in the bag

Investors observe the first days of the shared mobility firm, rival of Uber.

   Shares of Lyft fell below its IPO price on Tuesday after receiving its first negative review from a US analyst firm, which is skeptical of the possibility that consumers will give up on the market. Ownership of automobiles to rely on third-party transportation services such as the one offered by the shared mobility application.

The shares of the San Francisco company, which is listed on the Nasdaq stock exchange, fell 4.2 percent to 66.10 dollars per share after being valued in an early initial public offering of 24,300 million dollars at 72 dollars per share on Friday. action.

  On Friday, its first day on the stock market, Lyft shares reached a peak of 88.60 dollars per share. But from that moment, the actions have had constant losses.


The Seaport Global firm established a target price of $ 42 per share. Analyst Michael Ward said the current valuation of the action is a "leap of faith" under the assumption that consumers will give up owning cars to use shared transportation services instead.

"Even though vehicle optics is an underutilized asset, we believe that people will continue to own their own vehicles as their primary transportation and, instead, will rely on shared-travel services as a convenient supplement," Ward wrote in a client note

According to Bloomberg, Lyft's performance could make investors more cautious about other public offerings of expected Silicon Valley unicorns, including Uber and the Pinterest application, which submitted its corresponding documentation to the Securities and Exchange Commission. March 22.

In addition to Seaport Global, five other stock market analysts have started their Lyft coverage. Two of them recommend actions while three assign neutral ratings. The five firms, on average, expect Lyft's revenues to increase 60 percent to 3.45 billion dollars in 2019.

The rival firm of Uber was one week ahead of its competition in its exit to the stock market, starting a race for financial performance between the two most popular shared mobility applications in the US. UU

By the end of 2018, Lyft reported a loss of 911 million dollars and an income of 2.16 billion.