Oof, that’s got to sting.
According to Business Insider, Lyft shares dropped by 11% on Wednesday. The drop in share prices comes amid the report that Uber is seeking a valuation of $90-$100 billion for their own IPO.
Uber was originally expected to be valued at $120 billion, a significantly higher figure than what has come. Uber has stated that they intend to sell approximately $10 billion in stock as they revealed their S-1 on Thursday. Lyft, for its part, was worth at $72 at the end of March, and opened to the public at $87.24 per share. Lyft’s market cap was just under $20 billion on Tuesday, and the ride-sharing company raised approximately $2.69 billion during its IPO.
Lyft shares are now worth approximately 73% of their opening price, and 89% of the original price. CNBC and the New York Post have both reported that Lyft is trying to sue Morgan Stanley over allegations that they supported short-selling in the stock. Morgan Stanley has denied these claims.