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At this point, every single person who bought Lyft in the last two days is underwater. The only ones who are still above water are the pre-IPO investors and I w

At this point, every single person who bought Lyft in the last two days is underwater. The only ones who are still above water are the pre-IPO investors and I wonder what their lock-up agreements are. In no way can this be called a success for anyone, it's a terrible IPO.

deminature 8y ago
Every previous tech IPO in the past few years has had a curve like this. Facebook dropped below $20 shortly after IPOing, before starting its long ascent to >$100. Short-term speculators are likely to be burned, but if Lyft does meet expectations in the next few years, long holders will make out well.
m463 8y ago
The purpose of the IPO is to fund the company. Many companies have been railroaded by the banks to price their IPO shares so conservatively that they make relatively little money on the IPO. It may be dwarfed by the amount the banks and investors make in a few days. Taking the long term view, maybe this IPO is just fine. The company gets funds, they grow their business and the stock will rise well over time.
- JumpCrisscross 8y ago
  > The purpose of the IPO is to fund the company IPOs traditionally had four purposes: (1) Introduce a company's securities to public-market investors; (2) Price said securities; (3) Let existing investors sell; and (4) Raise money for the company. > Taking the long term view, maybe this IPO is just fine Analysts overstate the importance of IPO dynamics. Facebook had a terrible IPO and. Snap had a great first day [1]. That said, burning an entire class of investors (retail) on day one, particularly for a brand like Lyft, isn't a great show. It's also reasonable to call out the bookrunner, JPMorgan, as a bad choice for future IPOs. [1] https://www.cnbc.com/2017/03/02/snapchat-snap-open-trading-price-stock-ipo-first-day.html https://www.cnbc.com/2017/03/02/snapchat-snap-open-trading-p...
  - shhehebehdh 8y ago
    If the retail investors don’t like the price, they are not obligated to buy. Caveat emptor. They wanted to make a quick buck, and I guess that’s fine. It’s nice to want things. I feel precisely zero pity for them.
johnrob 8y ago
Those investors bought in two days ago - is this really a problem? Let’s see where the price is in 6 months. You’re only down if you sell.

deminature 8y ago

Every previous tech IPO in the past few years has had a curve like this. Facebook dropped below $20 shortly after IPOing, before starting its long ascent to >$100. Short-term speculators are likely to be burned, but if Lyft does meet expectations in the next few years, long holders will make out well.

m463 8y ago

The purpose of the IPO is to fund the company. Many companies have been railroaded by the banks to price their IPO shares so conservatively that they make relatively little money on the IPO. It may be dwarfed by the amount the banks and investors make in a few days. Taking the long term view, maybe this IPO is just fine. The company gets funds, they grow their business and the stock will rise well over time.

JumpCrisscross 8y ago
> The purpose of the IPO is to fund the company IPOs traditionally had four purposes: (1) Introduce a company's securities to public-market investors; (2) Price said securities; (3) Let existing investors sell; and (4) Raise money for the company. > Taking the long term view, maybe this IPO is just fine Analysts overstate the importance of IPO dynamics. Facebook had a terrible IPO and. Snap had a great first day [1]. That said, burning an entire class of investors (retail) on day one, particularly for a brand like Lyft, isn't a great show. It's also reasonable to call out the bookrunner, JPMorgan, as a bad choice for future IPOs. [1] https://www.cnbc.com/2017/03/02/snapchat-snap-open-trading-price-stock-ipo-first-day.html https://www.cnbc.com/2017/03/02/snapchat-snap-open-trading-p...
- shhehebehdh 8y ago
  If the retail investors don’t like the price, they are not obligated to buy. Caveat emptor. They wanted to make a quick buck, and I guess that’s fine. It’s nice to want things. I feel precisely zero pity for them.

johnrob 8y ago

Those investors bought in two days ago - is this really a problem? Let’s see where the price is in 6 months. You’re only down if you sell.