Lyft's Stock Price crashes below IPO Price on the 2nd day of trading; a tech bubble burst?

ROK_Marines's picture
Rank: Orangutan | 270

Lyft IPO initially seemed to have some hope: stock price jumps $72 per share, a 8.7% jump.

But, the glory didn't hold too long; on Monday, the second day of trading, Lyft stock price drops ~12% below its IPO price, closing at $69.01.

The Dealbook echoes one of many concerns of fresh tech IPO:

The rapid decline raises questions about investors' appetite for fast-growing but unprofitable tech companies. While Lyft has been expanding and gaining new revenue, it lost nearly $1 billion last year.

What do you guys think? Do you think the tech IPO bubble is now bursting after investors realize that unprofitable tech companies are not a good investment?

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Apr 6, 2019