Lyft Stumbles in Second Day a Public Company

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After flying high the first day of its initial public offering, Lyft fell back down to earth with a drop in its stock in its second day as a public company Monday.

Lyft, the second most successful ride-hailing startup behind Uber,  saw its share price dip below $72, the set price for the IPO initiated last Friday. It was valued at $24.3 billion during the offering and on Friday, pushed up to $26.6 billion in valuations.

Today, the stock closed at $69, sending its value drooping to $19.8 billion.

The worry among analysts is that Lyft’s experience as a public company could be a canary in a coal mine that could predict what future tech IPO’s could be in for when they go public.

“Falling below its IPO price is a gut punch for investors and Lyft,” said Dan Ives, managing director at Wedbush Securities in a statement given to business TV network CNBC. “This is a pivotal few weeks of trading ahead to gauge Street demand for the name as valuation and profitability continue to be wild cards for tech investors.”

Weighing down on Lyft’s performance is its lackluster history with earnings. The company has not yet scored a profit, as its regulatory fillings show it lost $900 last year.

Among tech companies looking to go public this year are Uber, Pinterest and Slack. Investors are already being put on notice that Wall Street may be keeping a less upbeat outlook on future unicorns with IPO dreams.

“Right now, there is a lot of exuberance and excitement,” said Chequers Financial Management chief investment strategist Nicole Tanenbaum in a statement to the Washington Post. “But at the end of the day, you’re betting on the long-term profitability of these companies. The path to that profitability is still unclear. A lot of assumptions are being made.”