Lyft IPO Should Mark The End Of The 'Uber'- Exuberant Tech Cycle In Silicon Valley

Lyft was valued at close to $25 billion when shares started trading on Friday. Today, it's down as much as 20% from the Friday highs.

In the buildup to the IPO, the last private investment in the company came in June of last year, and valued Lyft at $15.1 billion. Those investors had a paper gain of over 60% on Friday, for just a 9-month holding period. For everyone else, remember, you're looking at a company that did a little over $2 billion in revenue, while losing almost a billion dollars. Most importantly, over the three years of data that Lyft shared in its S-1 filing, revenue growth has beenSo, you're buying a company that hopes to be profitable in seven years, to justify the valuation today. Keep in mind, this is a company that has only existed for seven years.

Source: Digital Coin News (digitalcoinnews.net)

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