Lift stock, down 20% since IPO, set to fall more with short selling

Lift's share price has sputtered since the riding company began trading on Friday, and it could stop even longer when dust and bumper dust is settled, warned a Wall Street computer agency.

S3 Partners, which tracks short-term data, said in a report on Monday that further downward pressure on prices was expected when stocks were available for short-term loans, or investors were bumping down the stock price.

"With IPO shares not yet decided and therefore not physically on stock lending programs and SEC rules that prohibit listed investors from lending their shares to cover card sales for 30 days, only a small portion of the 34 million shares have traded so far today is the result of card sales, says Ihor Dusaniwsky, S3's CEO for predictive analysis. [1[ads1]965] Lifts in Lyft began trading on Nasdaq on Friday at $ 87 a piece, before falling into red to end the week with 10% Monday, the stock's first full day of trading, so the stock slid another 6.7% to $ 69, and the sale continued overnight to Tuesday.

"When the LIFT IPO shares begin to settle tomorrow and lending programs, see their loan portfolio grow. Over the next few days, we should see a dramatic increase in stock loans, short sales approvals and LIFT sales, "Dusaniwsky said.

" We can expect further price vagueness when the shorts are allowed to pedal the metal and redline their trading strategies. "

Read more: Here's who gets rich from Lyft's huge IPO

Alternative contracts that enable private investors to imitate professional investor's investments against a share price are also expected to launch on Thursday, Cboe Global Markets said in a press release on Monday

Wall Street analysts who have launched Lyft coverage so far agree that the stock is close to an appropriate valuation, with an average price target of $ 71, or about 4% above Tuesday's prices.