vendredi 29 mars 2019

IPO of the day: Lyft

Today, Lyft had it's IPO. For those who don't know Lyft, it's a competitor of Uber. For those who don't know Uber, I feel bad for you. 

Once again, the IPO implied a crazy valuation. 

We're talking here about a company that's been valued 27B US dollars and that had a loss of 911 million dollars in 2018. So, the company isn't making money, but people are crazy enough to pay 80 US dollars a share for a company that doesn't even have positive EPS. 

And let's talk about the moat of the company. What kind of moat is it exactly? Is it different from Uber? Or is it different to any other business model like Airbnb where the platform links the customer to any improvised service provider? 


Sometimes, IPOs lead to a good performance for investors, when we're talking about a unique business model. Facebook, Dollarama, Visa and Mastercard are a few examples of IPOs where the price asked was high but where performance was delivered before and after the IPO. But these few stocks about very special examples. I'm not a specialist of the taxi industry, but I don't see how someone could pay a very high price for that kind of company that could be emulated by anybody.

I don't see a bright future for Lyft. 

Let's see next year how wrong or right I'll be. Or, let's see in 2 years to be sure. 

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