Earlier last week, ride hailing company, Lyft, finally had its long awaited IPO, and has been getting a lot of attention from the stock market and the media. Lyft’s shares were initially priced at $72 a share, giving the company a market value of $24.3 billion. Since the IPO of Lyft, the stock has been extremely volatile, reaching highs of $87 a share before going to lows of $67 a share. Equity research analyst, Michael Ward, has already initiated coverage of the company, with a sell rating and a price target of $42 a share. Even though Lyft is a huge company and in an interesting space, ride-hailing, it still does not produce a profit, as the company lost nearly $1 billion in 2018.
I am curious to hear people’s reactions and thoughts to how Lyft will perform in the stock market? Additionally, do you think that this will spark other highly valued startups like Uber and Airbnb to IPO in the near future? Looking forward to this discussion.