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I don’t understand this expectation that retail investors should get a decent profit on a stock they bought days ago. It was priced at 72, went up a bunch, and
by freewilly1040 8y ago
I don’t understand this expectation that retail investors should get a decent profit on a stock they bought days ago. It was priced at 72, went up a bunch, and is now down less than 5% from what they offered it at. It all seems... fine?
- JumpCrisscross 8y ago> I don’t understand this expectation that retail investors should get a decent profit on a stock they bought days ago I don't have that expectation. IPOs are risky. IPOs of massively loss-making companies' non-voting stock are riskier still. But when two sets of investors--on institutional and one retail--bought stock within days of each other, under similar informational and macroeconomic circumstances, and one of those groups (the latter) was prohibited from buying at the price the other (the former) bought at, and a single institution is the arbiter of the price at which bucket A buys and sells, and bucket B gets screwed to the tune of 20% on a day the general markets rose, it's a reason to call out the bookrunner as a numpty. Particularly for a name, like Lyft, that will disproportionately depend on retail investors buying their stock for months to come.
- sk5t 8y agoWell, so? Who was holding a gun to retail investors' heads to buy on Friday? Today's sitters-out can be tomorrow's reasonably-satisfied long investors.