A huge amount of money is mutual funds. They stick pretty close to S&P 500 allocations. That means every $1 they spend buying a unicorn is $1 they must sell of another tech stock.
I do think this will get millilenials excited. It’s a chance for them to buy companies they know and use. They are under invested in stocks compared to prior generations.
According to the filing, Lyft recorded $2.2 billion in revenue in 2018, more than double the $1 billion recorded in 2017. Meanwhile, losses have been growing considerably. The company posted a net loss of $911 million on the $2.2 billion in revenue and a $688 million loss on 2017’s $1 billion.
Lyft currently holds 34 percent of the U.S. ridesharing market, a figure the company has been working tirelessly to increase as it gears up for its IPO. Uber holds the remaining 66 percent.
Remember, FB went down from $37 to $17. Exactly like this, all inflated IPO will land it. Next issue is with underwriters. If the initial response is poor, they may not support price.
FB was only company escaped out of underwriting devaluation. Let us wait and see how it works.