Lyft Post IPO Analysis

TL;DR

Lyft's share price has dropped since its IPO, with short interests pushing it down further, raising concerns about the company's valuation.

Transcript

lyft has had a difficult start on the public markets following its IPO on the Nasdaq on the 29th of March where it debuted with a share price of $72 that has now fallen considerably with the share price currently hovering in the region of $59 it's not a great sign of course to be struggling out of the gate but let's not forget that Facebook shares ... Read More

Key Insights

• 💦 Lyft's struggles in the public markets parallel Facebook's initial drop in share price after its IPO but subsequent recovery.
• 🍰 Short sellers have made around $200 million in profits since Lyft's IPO, creating anxiety around the company's valuation.
• 🙈 Lyft has disclosed significant losses in recent years but has seen an increase in its US market share.
• 😨 Notable early investors, including General Motors, have partnered with Lyft to develop self-driving cars.
• 🌸 Legal issues surrounding driver classification may increase costs and losses for both Lyft and Uber.

Questions & Answers

Q: How has Lyft's share price performed since its IPO?

Lyft's share price has fallen considerably since its IPO, currently hovering around $59, down from its initial price of $72.

Q: What factor might have affected Lyft's share price decline?

The announced IPO of its larger rival Uber and increased short interests in the stock have pushed Lyft's share price down further.

Q: What are the financial figures disclosed by Lyft in their IPO filing?

In their IPO filing, Lyft disclosed losses of $911 million in 2018 against revenues of $2.2 billion. In 2017, they had losses of $687 million against revenues of $1.1 billion.

Q: Who are some notable early investors in Lyft?

Early investors in Lyft include Shawn Agarwal, an investor known for his involvement in eBay and PayPal, and companies like General Motors, ican enterprises capital G, and Rakuten.

Summary & Key Takeaways

• Lyft's share price has fallen considerably since its IPO, currently hovering around $59.

• Short interests in the stock have increased, resulting in around $200 million in profits for short sellers since the IPO.

• Lyft disclosed significant losses in their IPO filing, but their US market share has increased.