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Think This Lyft Sell-off Is Bad? Wait ’Til Short Sellers Enter Fray

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Lyft Drops Below IPO Price

A rocky start for Lyft Inc. shares could get worse as the stock becomes available to short sellers amid rising skepticism on Wall Street.

Bears are expected to ramp up selling of borrowed shares as soon as Tuesday once trades from Friday’s debut settle, according to Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners. While Lyft fell 12 percent Monday, Dusaniwsky blamed the drop on shareholders exiting the stock, rather than short sellers, because IPO shares aren’t finalized yet and therefore not in lending programs.