The first major regulatory assault on rideshare is about to crash headlong into Lyft and Uber, courtesy of California bill AB5. California Bill AB5 Could Kill Rideshare The California legislature appears certain to pass AB5, which would effectively force Lyft and Uber to reclassify drivers from independent contractors to employees. Governor Gavin Newsom has publicly proclaimed his support for the...
Mega-unicorn Uber reported earnings, or rather losses, on Thursday that demonstrate why hype doesn’t always work in a company’s favor. Let’s hit the headline numbers and explain what they mean for Uber's stock. Solid Growth Across the Board Just like its rival, Lyft, Uber saw a significant increase in gross bookings. That metric was up 31% to $15.76 billion. That was compared to just $12 billion...
Lyft Chief Financial Officer Brian Roberts claims that losses the company suffered in 2018 were very likely the “peak” with better times around the corner. On a call with investors, Roberts said that an increase in revenue per rider was behind Q2 earnings completely smashing Wall Street expectations. Third-quarter sales, as well as full-year sales, look set to rise above Wall Street estimates...
Lyft delivered second-quarter earnings on Wednesday. Losses were still gigantic although a bit less than expected. The rest of the news was mostly bad but with a few bright points. Let’s parse the most important numbers to see what Lyft is telling us and where the stock may go from here. Good News Lyft delivered revenue of $868 million versus $505 million in the second quarter of last year, an...
Survey and research powerhouse J.D. Power released the results of its Power Mobility Confidence Index, and the news was terrible for self-driving and electric vehicles. That, in turn, means bad news for Tesla, Uber, Lyft and other electric car manufacturers. Nobody Wants Skynet Behind Their Wheel In short, the J.D. Power survey found that consumers trust auto-driving cars as much as they trust...
Lyft’s Chief Operating Officer, Jon McNeill, is leaving the company after only 18 months on the job. Lyft stock slid 2.27% on the news. 3 Possible Reasons Why the COO Flew the Coop For senior management to depart a position as necessary as operations after only 18 months, there are usually only three possible explanations. The first explanation is that Jon McNeill took the company as far as he...
By CCN Markets: The Uber and Lyft IPOs went absolutely nowhere, despite enormous hype and anticipation. Since then, other IPOs from lesser-known companies like Fiverr, CrowdStrike, and Beyond Meat have soared. Why are these stocks getting the love when the long-anticipated Uber and Lyft IPOs flamed out in spectacular fashion? There are different reasons for each, but they relate to fundamentals...
By CCN: The first earnings report for Uber stock is about to be released, and UBER is expected to have lost over a billion dollars in Q1. This loss comes despite an expected 20 percent revenue increase to $3.07 billion over last year’s same quarter. Uber Braces for $1 Billion Loss in First Quarter as a Public Company — CCN Markets (@CCNMarkets) May 27, 2019 It isn't too late to short stock...
By CCN: One of the earliest scams in the rideshare world was providing cars to drivers who didn’t have one or couldn’t afford one. It was particularly insidious early on because Uber was touting salaries of $96,000 a year for its drivers (which turned out to be nonsense). Yet the scam never really went away, and it continues to flourish as the Lyft Express Drive program. The Great Lyft Driver...
By CCN: The Uber stock price continues to freefall today following a historically terrible initial public offering (IPO). Last Friday, Uber held its first day as a publicly traded company with a starting price of $42 - already three dollars below its IPO price. Throughout the day, the stock continued to slide, ending at $41.70. In the process, investors lost a record $655 million with the Saudi...
By CCN: Lyft’s first earnings report was downright ugly, and not just because the company lost $1 billion in a single quarter. Investors expected a less-than-stellar balance sheet, but it was the backhanded slap in the face a company executive delivered to investors that leaves questions about the rideshare darling's transparency. Hey Investors, Lyft Knows What's Best for You! When asked about...
By CCN: Lyft's stock remains stuck in the doldrums, trading 22% below its IPO price of $72. Yet, the company appears to have its proverbial head stuck in the sand about its stock market debut flop. Lyft board member Maggie Wilderotter believes the Lyft IPO on the Nasdaq was "totally a success," she told CNBC. She said the company has its "heads down," but could it be possible that they've really...
By CCN: The Uber IPO is one of the most anticipated stock market debuts of the year as the ridesharing company plans to raise $10 billion, but the company’s amended S-1 filing suggests that it won’t be anything more than a damp squib. Uber expects its IPO to be priced in a range of $44 to $50 per share. The ridesharing specialist will be offering up to 180 million shares of its common stock...
By CCN: Ridesharing company Lyft launched its $2 billion IPO to much fanfare, and investors piled into Uber's largest competitor ahead of its own massive IPO. Since then, however, Lyft's stock price has fallen off a cliff and just keeps on dropping, seemingly with no bottom in sight. Why is the market rejecting Lyft, and should investors go anywhere near it anytime soon? LYFT Shares Keep Hitting...
By CCN: Pinterest priced its IPO at $19 a share, as reported by CNBC, exceeding the once lowered $15-$17 range provided by the online pinboard company. Pinterest could have gone bigger, as investor demand for the shares has already sent the new stock soaring in the market debut. Pinterest, which now trades under the ticker PINS on the NYSE, started trading at $23.75, a whopping 25% higher than...
By CCN: Uber revolutionized cross-town transportation, but that’s not going to help the company make any money. That's one shocking revelation from the Uber IPO filing, which makes the rideshare giant's $100 billion valuation look like nothing more than a pipe dream. Uber: 'We May Not Achieve Profitability' This major red flag really shouldn't come as a surprise. Massive competition in the ride...
Uber's decision to value itself at $100 billion rocked Lyft stock on Wednesday, causing the embattled rideshare company's shares to plunge as far as 10%. Contrary to the prevailing narrative, however, a strong Uber IPO would be wildly bullish for Lyft shares. Uber's $100 Billion Valuation Is a Stupid Reason to Dump Lyft Stock Sell Lyft for whatever reason you like: the dual-class voting...
Uber is poised to sell $10 billion in shares in the biggest initial public offering (IPO) of the year, according to Reuters.
After Lyft’s catastrophic debut on the stock market, Uber will learn from its rival’s mistakes. Uber’s IPO will be more cautious, more realistic, and ultimately more successful.
Following Lyft and TradeWeb, the next big IPO of the year is rapidly approaching. Make way for Pinterest, which could face similar headwinds to Lyft and has already begun to prep for this by slashing its IPO target by billions of dollars. Unfortunately for Pinterest - and prospective investors - the firm failed to learn from Lyft in one key area. Pinterest Opts for Same Controversial Dual-Share...
Someone at Lyft owes Pinterest an apology. The online pinboard company has no doubt been waiting for its public debut since the startup was first conceptualized in 2009. Now that the day of the Pinterest IPO has nearly arrived, the company can thank ride-sharing play Lyft for spoiling the party. Underwriters and the management team were left scrambling to slash the tech unicorn's valuation at the...
The TradeWeb IPO launched on Thursday, and shares are up over 25%. The OTC electronic trading outfit is the latest “unicorn” to go public this year, following Lyft’s highly publicized listing on the Nasdaq. As short seller’s pile into LYFT stock, it should be a cautionary tale for investors loading up on TW and its $6 billion valuation. Carl Icahn Dumped Lyft Shares on George Soros and You Never...
Lyft may not be a social media platform but where its stock price settles, above or below the IPO price, will either draw similarities with Snap Inc or Facebook. On its market debut, investors could have been forgiven for assuming the ride-hailing firm would turn out to be another Facebook (which is currently at $168 against an IPO price of $38) and not Snap (which is currently at $11 against an...
Lyft is getting crushed on the first trading day following its much-hyped IPO, and unsophisticated investors are learning the hard way that it’s not a good idea to plow into companies as soon as they go public. Lyft Stock Dives Below IPO Price While Dow, S&P 500 Surge Lyft went public Friday at $72 a share. Almost immediately, the price rose 20% as retail buyers raced to gobble up shares...
By CCN.com: Lyft is now a publicly traded company, and retail investors are clamoring for a slice. Shares roared at the open to $87, considerably higher than the $72 sale price. This 20% bump is an impressive showing, but is it enough to make Lyft a strong buy? Retail Investors Pile into Lyft after Friday IPO Already, the stock has given up 8% of these gains and is threatening a break below $80...
By CCN.com: As the headlines fill with talk of a mad dash for the Lyft IPO, Uber must be wondering why they didn’t crush their rival when they had the chance. It is not like these two companies came up together; Uber has always been more prominent and more global. So why did they allow Lyft to become such a thorn in their side? Uber Thought $9 Billion Lyft Price Tag Was Way Too Expensive Well...
Uber and Lyft might be getting ready for a couple of prime-time IPOs, but that doesn’t mean its all smooth sailing for the ride-sharing unicorns. Recent scrutiny on the amount that they pay their drivers is threatening to overshadow the public-listing amid a backlash from drivers who are looking to unionize. Uber Slashes Bonus Pay, Drivers Feel the Pain A minimum wage is now in place in New York...
Less than two weeks ahead of its highly-anticipated $2 billion initial public offering, US ridesharing giant Lyft already has Wall Street bulls pounding the table. D.A. Davidson analyst Tom White has initiated coverage of Lyft with a “buy” rating and is expecting big growth numbers ahead. Lyft IPO Gives Investors Plenty to Love Lyft filed its S-1 form on March 1 and began its roadshow for...
Ride-hailing company and Uber competitor Lyft will go public with 30.8 million shares at between $62 to $68 a pop. The announcement would value Lyft at $19.46 billion at the upper end of the spectrum. In total, Lyft will aim to raise $2 billion in the IPO. Per the Securities and Exchange Commission filing, Lyft will issue two classes of common stock, Class A and Class B with adjusted voting...
The US government and GM may have conspired against Uber to promote Lyft. As Uber feels the heat in the run-up to a would-be record-shattering $120 billion IPO, the ride-hailing tech giant will have to take on Lyft, a Mercedes-BMW alliance, and possibly the U.S. government. Uber vs. Lyft: The Competition Heats Up In 2014, the Wall Street Journal reported that the rivalry between Uber and Lyft was...
Ride-sharing leader Uber is about to steal the thunder of its nearest competitor. Reuters reports that Uber is set to file its S-1 document with the SEC in April followed by a road-show to court big investors, which will set in motion plans to debut in the public market. The filing would come on the heels of an IPO by the Silicon Valley darling's chief rival Lyft, the latter of which is likely to...
The story of Lyft's rise to glory is quite a tale. The ride-hailing service filed to go public on Friday with a potential valuation of $20 billion to $25 billion, with a familiar prospectus which shows rising revenue which could one day turn into immense future profits as well as overall losses which could send the company under without a cash injection. The path to success was hard fought for...
The big debate amongst IPO investors right now is whether they prefer Uber or Lyft. Both companies might appear to offer practically the same services, but when you get into the details things become less clear. Lyft is technically a “unicorn” with a valuation at over $1 billion, and Friday’s IPO included a lot of interesting information. Utilizing these new stats and some existing information...
Lyft, the ride-hailing giant based in the U.S., has officially filed its S-1 IPO registration and is set to be listed on the NASDAQ by April, before Uber. Early reports suggest Lyft is expected to secure over $100 million from the IPO and is forecasting a valuation of around $20 to $25 billion. Overvalued? Lyft Records $911 Million Net Loss in 2018 In its S-1 filing, Lyft disclosed that the...
The founders of Lyft, John Zimmer and Logan Green, are working on a plan to retain control of the company after it goes public. They will do this by creating a special class of stock that gives the holders “super voting” rights. The votes will allow the CEO and President to have fiat control. Exact details haven’t yet been made public. Lyft, whose value jumped to $7.5 billion after raising an...