LIFT stock

[Yaman02]

After beating ride sharing rival Uber to the market in an initial public offering that raised more than $2 billion, Lyft’s stock already appears to be running out of gas. In Monday’s trading, shares tumbled from Friday’s close, trading as low as $69.12 before recouping some gains, but still below its IPO pricing of $72.

Lyft’s stock began trading near $90 on Friday but quickly retraced those gains as investors took profits. The stock’s downward trend suggests that investors are having buyer’s remorse amid a “stampede” of hot closely held companies flooding markets with newly liquid shares.

Lyft is also contending with a growing mass of disgruntled drivers, who are advocating for higher pay.

Meanwhile, the competitive landscape is being steadily transformed by the industry’s push toward autonomous driving, and analysts are already warning about the hype surrounding Lyft’s offering.

With Uber and Google’s (^GOOG) autonomous car project, Waymo, ramping up the pressure, Wedbush noted last week that an “arms race” will create a number of uncertainties for Lyft.