The enthusiasm for Lyft’s new, publicly traded shares faded on Monday.
The stock price of the ride-hailing service dropped nearly 12 percent, closing out the day below its initial public offering price of $72 a share last week.
The stock lost 11.85 percent, or $9.28 per share, to close out at $69.01 on Monday.
Lyft’s shares traded for the first time Friday under the ticker “LYFT” on the Nasdaq index. In their market debut, shares closed at $78.29, up 8.7 percent from their offering price.
“Some stocks – and this is one of them – there’s excitement right away and maybe they get bid up on the first day,” said JJ Kinahan, chief market strategist at TD Ameritrade.
But over the weekend, investors took a closer look.
“This is a company that has been around. Its had some of its growth already, so you have to look going forward,” Kinahan said.
Lyft’s IPO was also highly anticipated as a potential bellwether for other major tech companies that are lining up to go public sometime this year, including major rival Uber, according to market analysts.
One of Lyft’s biggest investors General Motors is expected to have won big. The automaker invested $500 million in Lyft in January 2016 and holds 18.6 million Class A shares of the company.
“We haven’t had an exciting IPO in a while,” Kinahan said. “The market wanted to see if there is still interest in IPOs.”
In a regulatory filing Thursday, Lyft said it would raise $2.3 billion with the offering price at $72 per share. The company plans to use the proceeds for working capital, operating expenses, capital expenditures, future acquisitions and investments in new products, services or technologies.
Contributing: Janna Herron
This article originally appeared on USA TODAY: Need a Lyft? The stock price of ride-hailing company ends lower following last week’s IPO