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.
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Lyft IPO reignites talk about Silicon Valley's contract labor problem — and the gig economyCoinciding with Lyft's stock market debut on NASDAQ on Friday, the founders plan to increase the company's workforce of independent employees. This is reigniting debate in Silicon Valley about how to compensate contract workers.
Source: CNBC - 🏆 12. / 72 Read more »