The initial public offering of ride-hailing company Lyft was the biggest one this year and considering the fact that it marked the debut of the ride-hailing industry in the stock markets, there was a huge buzz about the company’s listing. On the listing day, the company was off to a flyer as shares were oversubscribed and the shares of the company ended up handsomely above its listing price of $72. However, on Monday, Lyft was in a massive shock as shares of the company kept sliding and eventually all the gains from the first day of trading were surrendered on the second day.

Considering the sort of start if had on listing day, the slide on Monday came as a big shock and according to analysts; much of it has to do with the fact that the company has still not been able to turn a profit. However, in this regard, it needs to be kept in mind that the fact that Lyft had not recorded a profit at any point during its existence. It was something that was quite well known in the days leading up to its listing and hence, the pounding that the stock took yesterday has been a bit of a surprise for many. Lyft shares had a listing price of $72, and on listing day, the shares rose to more than $87 at one point. On Monday, the shares continued to slide and went to its lowest point of $67.78, before recovering to $69.01. It was a drop of 11.8% and what is most alarming is that the current price of the stock is lower than its listing price.

Needless to say, the first two days in the stock market has been a topsy turvy ride for the ride-hailing company, and it is almost certain that the developments are being closely watched by rival Uber. Uber, which remains the biggest ride-hailing company in the world, is apparently going to have its IPO soon and the performance of the Lyft stock is going to give it a fair idea about what to expect from the capital markets. Uber’s IPO is apparently going to be the biggest one in history, and sources believe that it could be valued at $120 billion. That being said, Lyft should perhaps take comfort from the performance of Facebook right after its IPO. The social media giant experienced a similarly rollercoaster opening in the stock market.