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Lyft Takes a Dive Days After IPO

Lyft’s stock has already taken a deep dive of over 25% just days after launching their IPO.

This has taken place before short-sellers have been allowed to bet against the stock. At the moment, things aren’t looking brilliantly for the first public ride-sharing company.

As more shares in Lyft are made available for lending, S3 Partners predicts further downwards pressure on the young stock. It certainly won’t help when people start shorting Lyft, which is almost certain to drive Lyft stocks even lower. IPO shares have yet to be fully settled, so any further analysis will have to wait. Once the dust settles, a clearer picture will emerge, but the consensus is still negative for the short-term.

Lyft started trading on the Nasdaq last Friday at $89 a piece. Friday saw shares fall 10% before the end of the week. Trading resumed Monday, which saw shares fall another 6.7% to $69. Early Lyft investors cannot sell their shares for at least 6 months, so many are actually planning to short Lyft in order to recover their losses.

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