Other investors who got involved earlier – like Silicon Valley-based venture capitalist Andreessen Horowitz and billionaire activist Carl Icahn – still have plenty of leeway, however.
Lyft could still prove to be a great investment. Other initial public offerings, including Facebook, fell from their original price, but became home runs. Initially priced at $ 38 per share when it went public in 2012, the stock plunged and didn’t reach that price again until 14 months later. Now, almost seven years later, the stock price has almost quintupled to almost $ 180 per share.
But Lyft’s hype – and the difficulties that come with it – could lead to problems for other highly anticipated tech IPOs, most immediately Pinterest, which could cost later this week.