May 10, 2019 / 4:11 PM / 4 months ago

Lyft hits record low as Uber slumps in Wall Street debut

FILE PHOTO: Uber and Lyft stickers are seen on a car windscreen as protesters join an Uber drivers' strike for higher wages at LAX airport in Los Angeles, California, U.S., May 8, 2019. REUTERS/Lucy Nicholson

SAN FRANCISCO (Reuters) - Lyft Inc’s stock slumped to a record low on Friday as Uber Technologies, another company hemorrhaging billions of dollars, fell in its Wall Street debut.

Uber fell 8% from the $45 price set in its IPO late on Thursday, which valued the company at roughly $82 billion, just above the $76 billion valuation it attained in its last private funding round

Smaller Lyft saw its shares drop 6% to $%51.79. Lyft’s 27% slump from the price in its March 28 IPO, and Uber’s drop immediately at the start of trading in its shares, underscore many investors’ trepidation about the two ride-hailing companies that have not said when they will become profitable.

“Uber is considered the leader and the one in the strongest market position. If investors are not getting behind it on the lower valuation, that creates a challenge for the smaller Lyft in investors’ minds,” said Wedbush analyst Ygal Arounian.

Uber lost $3 billion in 2018 from operations, while Lyft lost $1.1 billion in the March quarter of 2019.

Lyft’s falling stock this week put pressure on Uber as it finalized the price of the most anticipated IPO since Facebook’s debut in 2012.

Reporting by Noel Randewich, additional reporting by Shariq Khan in Bengaluru, Editing by Chizu Nomiyama

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