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"...and prospects darken" It doesn't actually sound like that from the body of the article. I have no idea if this is true or not, but the story says most of
by jmull 8y ago
"...and prospects darken"
It doesn't actually sound like that from the body of the article.
I have no idea if this is true or not, but the story says most of the $1.14B loss was due to booking employee stock based compensation of $894M. I'm assuming that's come out of the IPO and is not a recurring cost.
With revenues of $776M, which perhaps are mostly recurring, doesn't that seem to bode well for the future?
Of course, I'm not sure what we can expect their actual on-going costs or revenues to be. I'm just not seeing any reason for concern in this article fter the headline.
- samfisher83 8y agoThere total expenses was 1,932,917. Even if you remove stock comp they still lost money.
- marcinzm 8y ago>With revenues of $776M, which perhaps are mostly recurring, doesn't that seem to bode well for the future? Isn't the majority of that going to drivers which gives them a lot less room to maneuver financially?
- jmull 8y agoWell, sure, maybe. It would just be nice if the article backed up the headline rather than leaving us to speculate.
- brentm 8y agoMost analysts are positive on company, media and market not so much. I think I'd bet on the analysts being right. I think eventually for Lyft & Uber prices will creep up, discounts & marketing decrease and plenty of money will be made on a small spread.
- warp_factor 8y agoAnalysts predict where the stock is going in the short term based on "sentiments" and "emotion". I wouldn't bet anything on them.
- strikelaserclaw 8y agoif Analysts knew so much they would be rich instead of providing advice, which I've found to be hit or miss, to other people.
- brentm 8y agoOf course, they might be totally off base and completely wrong and the company might go to $10 or $0. But when compared to the media who live and die by the dramatic story that garners the most interest and the markets which are amplified by many factors I personally prefer the opinion of those who at least spent time modeling it out. I also personally think transportation is a necessity and Lyft has levers it can pull which can make a big impact in their bottom line.
- asdff 8y agoWhat levers does lyft have? If they raise the price too high, there's a point where people will go back to cabs (yellowcab has an app now, believe it or not), and now they can opt to drunkenly ride a scooter or ebike for $2-5.
- bduerst 8y agoMaybe they're on their way there? Gotta start somewhere. Maybe not ridesharing IPOs though.
- erikpukinskis 8y agoThey do know a lot. But the work the analysts are doing is price of entry stuff. You don't make money on Wall Street by "knowing a lot" you make money by knowing one thing that one person opposite you doesn't. That means you have to know a lot of things that won't make you rich, just to prevent becoming poor.
- dd36 8y agoThat’s not true. They do 12-month price targets based on fundamental financial analysis. It’s the short term that they’re not predicting.
- darkwizard42 8y agoYes... this article's headline is absolutely off. The massive one-time compensation from IPO was unavoidable. Outside of that Lyft is now losing LESS money than it was before, beat on Passenger Growth AND beat on $/passenger. Overall, a good quarter but definitely still losing a LOT of money.