Shares of ride-hailing giant Lyft shares took a nose-dive on Monday, its second day of trading, wiping any gains in made on its IPO day.
The Lyft stock fell at least 10.5%, hinting at a disappointing offering. Lyft opened on the Nasdaq at $87.24, spiking 21% on Friday. It later shriveled to $78.29 in the day, valuing Lyft at about $22 billion.
In the past year, Lyft had posted a loss of $911 million, even with the top-line rising two-fold to $2.16 billion. But with the absence of a timeline by the company on when it would turn to profit, investors seem to have lost interest in it.
With some analysts recommending ‘neutral’ to ‘hold’ ratings, the Uber rival is yet to see how it will be really received by the market.
By noon, Lyft shares were down at least 9.5% on Monday.
Lyft now operates in about 300 markets, with its active riders in the quarter growing three-fold in the last couple of years. Despite the major chunk claimed by Uber, Lyft holds about 39% of the US ride-share market.