Lyft’s IPO disclosure shows it’s not close to profitability
Sadly for Lyft I think the best comparison will be Snap. And just one look at the SNAP chart will tell you why you should avoid the Lyft IPO.<p>It will go public at an inflated price and hold that valuation for a quarter or two and then people will start asking where either the profits or growth are and Lyft will need to start growing or erasing their huge operating losses right at the same time Uber is trying to grab as much ride share as possible gearing up to their own IPO.<p>So at a time when the market will be starting to really pressure them to cut losses, probably by cutting the driver's portion of revenue and raising prices, Uber will be trying their best to inflate their own ride share metrics by giving drivers more and cutting ride costs.<p>What is the story you can tell that paints Lyft as a good investment over the next 2 year period?<p>Then there is Lyft's dual share structure will get it kicked out of many ETF's.  This locked in money is a godsend to most companies as they help buoy the stock price by having locked in holders of teh stock during turbulent times.  I think MSCI will put Lyft into some of its indexes given that it just put in 8-10 Chinese companies with dual listing share structures<p>One thing I do like in Lyft's favour is that they could be a counter cyclical stock, ie they do well when the rest of the market isn't, due to people using Lyft to replace a second car or a lease that they've given up.<p>We just haven't had a recession while ride sharing was a main stream thing.<p>> Zimmer, Lyft's cofounder, went on to assert that private car ownership would “all but end in major U.S. cities” by 2025.<p>Given that people are currently signing leases and payment plans for cars that won't expire by then I'd say this is a bit of a stretch:)