- Lyft shares fell on Friday after its chief rival, Uber, officially filed to go public the evening prior.
- Cautious analysts covering Lyft have cited competition in the ride-hailing space as a fundamental concern about the stock.
- Watch Lyft trade live.
Lyft shares on Friday fell to the lowest level since going public after rival Uber officially filed to go public the evening prior, underscoring a fundamental concern about competition Wall Street analysts have cited for weeks.
"We’ve been anticipating that LYFT shares have been under pressure as investors we’ve spoken with have been worried about Uber’s impending S-1 and roadshow which could be a dark shadow over Lyft’s stock in the near-term," wrote Dan Ives, an analyst at Wedbush, in a note to clients on Friday.
Lyft fell as much as 6.1%, to $58.28 a share, on Friday; the company initially priced its stock at $72 a share in late March, and opened at $87.24 a share. It then slipped below its IPO price in its second day of trading.
While it’s still early in Lyft’s life as a publicly traded company — and the first of its kind to debut on a public market — its weak performance may serve as a warning to other high-profile technology companies expected to go public this year.
"We are bullish on the growth prospects for ride-hailing, but as the clear No. 2 in the US, Lyft is likely to face a bumpy ride," HSBC analysts wrote in a note to clients on Thursday. The firm initiated coverage of the stock with a "hold" rating and a price target of $60 a share.
"Near-term competitive intensity could remain fierce as Uber potentially defends its market share under a new management team," they added.
More broady, Wall Street is cautious on the name. Of analysts surveyed by Bloomberg, four have "buy" ratings on the name, six have "hold" ratings, and one has a "sell" rating.
- More than 6,100 stores are closing in 2019 as the retail apocalypse drags on — here’s the full list
- ‘Setting a high bar’: Banks are in rally mode after JPMorgan and Wells Fargo top expectations
- These are the 10 most confusing words in the English language