The problem with Lyft, market watcher Kevin O'Leary says, is that 'it makes no money.'
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.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Lyft raises IPO price range ahead of Friday IPOLyft raised its expected price range to $70 to $72 per share, according to an amended S-1.
Read more »
Lyft IPO: 5 things to know about the ride-hailing company ahead of its IPOLyft Inc. appears poised to beat rival Uber Technologies Inc. to an initial public offering, and that’s important for a number of reasons.
Read more »
Lyft stock soars after IPOShares of Lyft Inc. are up 22% in morning trading Friday following the ride-hailing company's initial public offering. The first trade was executed for...
Read more »
Lyft IPO investors must have their head in the cloud to believe in this stockLyft IPO investors must have their head in the cloud to believe in this stock, says TimMullaney
Read more »
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.
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.
Read more »
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.
Read more »
Cramer: Lyft IPO likely to surge, drawing investors back to whole stock marketLyft is slated to have a blockbuster initial public offering, drawing investor attention back to the stock market, CNBC's Jim Cramer said on Thursday.
Read more »
Lyft prices IPO at $72 per share: SourceLyft IPO priced ahead of Nasdaq debut expected Friday.
Read more »