Lyft sinks 12%, falls below IPO price

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.”

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