Lyft shares dropped on Wednesday after it was reported that Uber is seeking a valuation between $90 billion and $100 billion.
, was seeking a valuation of between $90 billion and $100 billion when it officially files to go public.
Uber plans to sell around $10 billion worth of stock when it officially files to go public on Thursday,Uber's new projected valuation, according to Reuters, is below that of estimates. In contrast, Lyft's market cap on Tuesday was just under $20 billion, having raised about $2.69 billion in its IPO last month.has traded in a volatile fashion since its debut, which isn't uncommon for newly minted public companies.
The stock priced at $72 a share the evening before its IPO in late March, then officially opened at $87.24 a share, thenin its first full day of trading. It's now down about 27% from its opening price, and down 11% from where the stock initially priced. Lyft analysts are concerned about the company's uncertain path to profitability and a highly competitive ride-hailing space. Regulatory uncertainties may also pose a challenge, some analysts say,"While we believe the ridesharing market will continue to grow and expect LYFT to be a prime competitor, in our view, current valuations reflect an overly optimistic view of consumer behavior in the US," said Michael Ward, an analyst at Seaport Global, in a note to clients last week.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Uber looks to raise about $10 billion in IPO, seeks valuation of up to $100 billion--reportsUber Technologies is looking to offer around $10 billion worth of stock in its initial public offering, with most of the shares being sold directly by the...
Read more »
Lyft IPO Should Mark The End Of The 'Uber'- Exuberant Tech Cycle In Silicon ValleyLyft, 'lifted' to a valuation of close to $25 billion when shares started trading on Friday. Today, it's down as much as 20% from the Friday highs.
Read more »
A Murdered College Student’s Family Is Calling On Uber And Lyft To Make Rides SaferAt her funeral, the 21-year-old’s cousin asked ride-sharing companies to “provide safeguards to the mistakes that are easily made, the mistake that took Sami from us.”
Read more »
How Uber and Lyft riders can stay safe after Samantha Josephson’s deathThe University of South Carolina student entered the car of a man she mistook for her Uber driver, police said.
Read more »
Lyft shares drop to a new low as experts question its valuation ahead of Uber's debutLyft shares tumbled Wednesday following skepticism around its valuation and reports that Uber will unveil its public offering Thursday.
Read more »
Betting against Lyft is 'The Amateur Short,' Citron Research saysCitron Research is long Lyft and says that anyone betting against the company is an 'amateur.'
Read more »
Carl Icahn sold Lyft stake to Soros prior to IPO: WSJBillionaire investor Carl Icahn sold his roughly 2.7 percent stake in Lyft Inc t...
Read more »
Carl Icahn sold Lyft stake prior to IPO: WSJBillionaire investor Carl Icahn sold his roughly 2.7 percent stake in Lyft Inc a...
Read more »
Lyft's shares rise after Citron advises against shorting stockShares of ride-hailing company Lyft Inc rose as much as 4 percent on Friday, set...
Read more »
Carl Icahn sold Lyft stake ahead of IPOLongtime activist investor Carl Icahn sold his stake in Lyft prior to its initial public offering last week, according to sources familiar.
Read more »