- Lyft shares hit a fresh low Monday as the stock’s post-initial-public-offering rout continued.
- Shares were trading at just over $57 apiece — 35% below where they made their debut on the Nasdaq.
- Analysts are concerned over the company’s uncertain path to profitability and an intense competitive environment dominated by its rival Uber.
- Watch Lyft trade live.
Lyft shares fell more than 5% Monday, hitting a fresh low as the ride-hailing company’s post-initial-public-offering rout raged on.
Wall Street analysts continue to fret over the company’s steep losses and the competitive threat that Uber poses.
Here are a few numbers to place Lyft’s post-IPO drop in context:
- At Monday’s low, Lyft fell to $56.57 a share — 35% below its opening price of $87.24.
- Lyft has now fallen 27% since it closed its first day of trading at $77.75 a share.
- Lyft priced its IPO at $72 a share; the stock is trading about 21% below that level.
- Lyft fell below its IPO price on its second day of trading.
Lyft shares took a hit last week after Uber, its much-larger rival, officially filed to go public. Uber is expected to begin trading on the New York Stock Exchange in early May. Lyft is listed on the Nasdaq.
“Valuing ride-hailing companies is complicated, and the way competition will evolve remains unclear,” HSBC analysts wrote in a sweeping report on the ride-hailing space last week.
The firm initiated coverage of Lyft with a “neutral” rating and a $60 price target, and it listed “intensified competition with Uber in the US” as a key downside risk.
“Lyft was very aggressive on subsidies in 1Q19, and we see the risk of Uber responding,” the analysts wrote. “However, with both companies set to be public soon, perhaps both will refocus on profitability and gradually rationalize subsidies — the most sensible outcome, in our view.”
Also Monday, Lyft said it had to pull thousands of e-bikes off the streets of New York City, San Francisco, and Washington, DC, after some riders experienced “stronger than expected braking.”
Lyft Inc. shares were trading at $56.11 per share on Monday afternoon, down $3.79 (-6.33%). Year-to-date, LYFT has declined -28.33%, versus a 16.54% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Markets Insider.