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Lyft’s Tumbling Stock Is a Worrying Sign for Other Unicorns

  • Shares closed 21 percent below Lyft’s $87.24 opening price
  • Pinterest, Postmates, Slack, Uber are hoping to ride a wave
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Lyft CEO Green Says the Business Will Be 'Very Profitable'
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Lyft Inc. closed its second day of trading 4.2 percent below its $72 public offering price, an ominous sign for the stampede of unicorn companies planning to follow the ride-hailing business to the stock markets this year.

The IPO has become a test case, not just for rival Uber Technologies Inc., but for a glut of highly valued startups like Pinterest Inc., Postmates Inc. and Slack Technologies Inc. that have signaled plans to list this year. Slack has selected the New York Stock Exchange for a planned direct listing this summer, a person familiar with the matter told Bloomberg.