Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Lyft share price falls 11% after notable IPO debut

The ridesharing app's stock has fallen after a spectacular start on Wall Street.

Lyft share price is down after an impressive debut on Wall Street last week. After launching with a stock price of $87, the rideshare app has now fallen to $70 a share.

Why has Lyft stock fallen?

Lyft’s initial public offering( IPO) dropped after a much-hyped start in the US stock market. The ridesharing company was the first of highly anticipated 2019 IPO’s. However, after its launch, the corporation’s stock fell because of investors having second thoughts about buying the stock. The company is also facing bad publicity after ridesharing drivers went on strike for higher pay in Los Angeles after the IPO launched. In addition to those issues, the advent of self-driving cars from Google could cause more uncertainty for the ridesharing app.

Lyft’s IPO is also declining because the company hasn’t been profitable yet. Though the ridesharing app made $2.2 billion in revenue in 2018,the corporation also had $911 million in losses as well.

What does Lyft’s IPO decline mean for other unicorn IPO’s?

Lyft’s stock underperformance after being valued at $24 billion could be unfortunate signs for other unicorn IPO’s valued at over $1 billion. Tom White, analyst at D.A. Davidson, said that the excitement of Lyft’s stock fell after the first day of trading. The stock has also been rated as neutral amid lukewarm Wall Street expectations.

‘Feels like just some of the faster money exiting the stock following the solid first-day pop. LYFT also caught a Neutral rated initiation today which probably isn’t helping either,’ said White.

While Lyft's IPO is struggling, investors will be watching its rival Uber when it goes public later this year to see if tech startups can succeed on Wall Street before turning a profit.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.