With the stock entering the recovery path, the general perception is that the uptrend will be sustained in the coming days. Meanwhile, Reuters reported that Friday’s upturn was the results of a statement issued by a popular short-seller, asking investors to hold on to Lyft.
With the stock recovering and moving above the IPO price, the general perception is that the uptrend will be sustained in the coming days
In 2018, the company recorded a net loss of $911 million, despite revenues growing two-fold on a year-over-year basis. Going forward, the investors will be looking for specific updates from the company about its turnaround strategy.
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With the number of active riders increasing sharply in the last couple of years, Lyft currently operates in 300 markets and holds around 39% of the ridesharing market in the US, which is dominated by rival Uber. Uber is slated to go public later this year, in line with the rapid expansion of the online taxi business that is forecast to become a $300-billion industry by 2030.
After starting Friday’s trading, Lyft reached a peak of $75.83 in the initial hours, before slightly losing the momentum towards the end of the session.