Signage for Lyft is seen displayed at the NASDAQ MarketSite in Times Square in celebration of its initial public offering on the NASDAQ Stock Market in New YorkThat decline happened before short-sellers have been allowed to bet against the stock.
As more shares are available for lending, more downward price pressure is expected by S3 Partners, a firm that tracks Wall Street short-interest data. Lyft's stock price has sputtered since the ride-hailing company began trading on Friday, and could stall even further when the IPO dust settles, a Wall Street data analytics firm is warning.
S3 Partners, which tracks short interest data, said in a report Monday that it expects further downward pressure on prices once shares are available for lending to short-sellers, or those investors betting a stock's price to decline. "With IPO shares not settled yet and therefore not physically in stock lending programs, and SEC regulations prohibiting IPO underwriters from lending out their shares to cover short sales for 30 days only a small fraction of the 34 million shares traded so far today are the result from short sales," Ihor Dusaniwsky, managing director of predictive analytics at S3, said.
haha