Date: 2nd April 2019
On Monday, shares of Lyft dropped about 12
Lyft shares experienced a peak price of $88.60 on Friday after which on Monday the price went down to just $69.01. Due to this decline, about 41 million shares were sold off in the stock market on Monday.
Just before its initial public offering, the company announced its losses in 2018 of over $900 million. This might be a reason for the wild fluctuations of the share price
Other companies like Lyft’s rival Uber, Slack
Various tech companies have not seen light in terms of profits for quite a while in the global markets, like the ones mentioned above. An exception to that is Zoom, a video-conferencing company, reported profits while it issued its shares for the first time. This makes it one of the rare tech companies to have impressive financials.
While many analysts show positive expectations for the shares of Lyft as compared to Uber, there are various downsides for the company, including its losses in recent years, which makes it a tricky investment. Today many of the initial investors of the company dumped the shares of the company, which is another red flag for its stock market image.