So lyft raised 2340 million in its ipo and lost 1100 million last quarter, compared to 243 million in the same quarter last year. They blamed the loss growth on costs associated with the IPO.
So, it cost them around 800 million to raise 2340 million. It leaves them with roughly 5 extra quarters of cash to burn, net of costs. Why would they do this other than desperation for cash and/or to give the early investors an opportunity to loot a gullible investing public?
Sold to you, bruh. I maintain my “sell” rating with a price target of $0.
Most inside investors can't cash out the day the IPO hits the market. Like Uber selling only 10% of the outstanding shares I would guess Lyft sold about the same amount. Usually a lockup of 60 to 90 day window from announcing is mandatory. One of the biggest reasons the stock begins to drop is insiders beginning to sell. This is all public information. Lyft dropped for many reasons including Uber IPO date being set, undisclosed facts coming out and poor earnings.