Shares of Lyft sank almost 12 percent Monday, falling below the stock’s IPO price in its second day of trading on the public market.
The stock ended trading at $69.01, 22 percent below its Friday intraday high of $88.60. More than 41 million shares changed hands by the end of the session Monday.
The stock sold at an initial IPO price of $72 in an oversubscribed offering.
The ride-hailing company is the first of a heavyweight class of tech companies to go public this year. The stock jumped as much as 23 percent in its opening day Friday before settling to a 9 percent gain. The company had a market cap of about $22 billion Friday. It’s market cap Monday morning was about $19.8 billion.
“Falling below its IPO price is a gut punch for investors and Lyft,” Wedbush managing director Dan Ives said in a statement to CNBC. “This is a pivotal few weeks of trading ahead to gauge Street demand for the name as valuation and profitability continue to be the wild cards for tech investors.”