Lyft is a 'treacherous' stock, post-IPO action is 'extremely negative': O'Leary

div > div.group > p:first-child"> The ride-hailing company enjoyed a bombastic initial public offering on Friday, with its stock soaring over 20 percent above its target price range. Shares reversed later in Friday's session but settled roughly 9 percent higher.

"I always ask myself when I'm buying a stock, what portion of the free cash do I get in the form of a dividend each quarter? And the answer is obvious. You can measure it with something like a Levi's, but there is no free cash at Lyft," he said."We can debate this till the cows come home, but that's a very treacherous stock. It makes no money."

"In order to justify its current market valuation, investors need to take a big leap of faith that the millennials and later generations will forego ownership of a car and opt instead for reliance on a ridesharing service," Seaport said in an investor note."Despite the optics of vehicles being an underutilized asset, we believe people will continue to own their own vehicles as primary transportation and instead rely on the ridesharing services as a convenient supplement.

"We're not telling any of our clients to buy into these IPOs," he added, pointing out that not only is the company unprofitable, but it actually loses roughly $1 billion per year."It's not really a transportation play, although it would seem to be. It's really a financial services play, because it's the investment bankers that are getting rich.""It's very healthy for the market overall.

Source: News Formal (newsformal.com)

kevinolearytv is just sad no one will give him a ride

fall on debut

Teh dump before the pump.

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Buying Lyft stock requires making 'too many big assumptions,' analyst warns amid IPO hypeGuggenheim restrained its enthusiasm for shares of Lyft on Monday, beginning coverage of the rideshare company's stock with a neutral rating due to what the firm sees as a hazy outlook. This company sucks. No clear plan for profitability. Starry-eyed TV analysts say driverless cars will make Lyft profitable... those are a long way away. this IPO deal just made my skin crawl, Retail investors who bought at the open lost over 11% by day's end. Cash grab.
Source: CNBC - 🏆 12. / 72 Read more »

Lyft stock drops 10%, falling below IPO priceLyft Inc. shares tumbled 10% on Monday morning, dropping below their IPO price of $72 in a rough second day of trading for the San Francisco ride-hailing firm. ::pretends to be shocked:: profgalloway called it! On its way to $50
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Lyft stock drops more than 11%, falling below IPO priceLyft Inc. shares tumbled more than 11% Monday, dropping below their IPO price of $72 in a rough second day of trading for the San Francisco ride-hailing firm. You should do a story on the “no unsupervised minors in a Lyft/Uber” situation. Most people are unaware that minors can’t ride alone. You'll know which drivers got the 'benefit' of being able to invest in the IPO by their sour nature after today's plunge. Unless they sold mid-day Friday for a profit.
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