div > div.group > p:first-child"> The ride share company's freshly minted stock, after an initial surge, fell below its offer price on its second day of trading Monday, a warning that other hyped unicorns may have to be more conservative about their price in the initial public offering market.
Ablin said Lyft has come public in a stock market that is fully valued, but analysts said it is not bubbly like the when the IPO was red hot before the tech bubble burst in 2000. She said the market is still figuring out what the company is worth."This is the public market saying we don't think it's worth what it was offered at. It's going to take some time for this to be figured out. The result is probably good for investors, not so good for companies. So the IPOs that follow, it, particularly the money-losing unicorns, are going to be priced more reasonably," said Smith.
"What you want to see is the majority of them trading above their IPO price and that has been the case. It's kind of normal to see that," said Smith. But she added that the after-market returns on average this year have been negative 0.4 percent. Lyft is one of a handful of large IPOs that are trading negative, after their offerings in the past 12 months. CNBC searched for firms that went public with market caps above $3 billion.
$lyft crash doesn't bode well for $uber IPO
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Lyft IPO: 5 things to know about the ride-hailing company ahead of its IPOLyft Inc. appears poised to beat rival Uber Technologies Inc. to an initial public offering, and that’s important for a number of reasons.
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