Lyft share rises after short-seller Citron advises to hold on

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Lyft share rises after short-seller Citron advises to hold on

On Friday, the 5th of April 2019, the shares of ride-haling start-up, Lyft Inc. surged as much as 4.92 percent, posting its best intra-day gain since making its public debut last week, after short-seller, Citron Research had recommended its investors to hold on to the stocks in a near-term outlook.

Never the less, after rising just a notch shy of five percent during the US morning trading hours to $75.54 as beforementioned, the Lyft Inc. shares had wrapped up the day with a 3.40 percent gain at $74.45. Besides, Lyft Inc.

shares had also managed to post a weekly gain of 4.33 percent after beginning the week at $69.01 per share, well below its IPO debut at $72.00. Apart from that, following its high-profile Initial Public offering, a mass-scale optimism had pushed its share prices to a 21 percent higher on last Friday, however, later the price had fallen well below its debut price at $72, as analysts had started to caution that the ride-hailing services could never be an alternative to personal ownership.

Friday’s surge had largely been catapulted by the comments of short-seller Citron, which had been holding stakes in Lyft Inc. for the past couple of years. Adding the ride-hailing service as a “megatrend”, Citron told that the Lyft Inc.

had a good prospect, and the investment fund had also increased its buying position in the company in public market.