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Lyft just had a lousy day but that’s its own problem, not the stock market’s | CNBC

Lyft may have launched with a frothy stock price in a not so frothy stock market.

The ride share company’s freshly minted stock, after an initial surge, fell below its offer price on its second day of trading Monday, a warning that other hyped unicorns may have to be more conservative about their price in the initial public offering market.

Lyft fell 11.9 percent Monday, ending the day at $69. On Friday, it closed 8.7 percent above its $72 offer price on its first day of trading, but that was well below its opening surge of 20 percent earlier that day. The stock was cratering as the overall market soared Monday, with the Dow, the S&P 500 and the Nasdaq, all rallying more than 1 percent. Analysts said Lyft was being left in the dust because the broader market of investors are skeptical about its offering price.

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Lyft just had a lousy day but that’s its own problem, not the stock market’s.