Despite all the red flags, the rise of passive investing forces too many institutions to unconditionally buy a big IPO like Lyft.
With all these concerns, you’d expect investors to balk at Lyft’s lofty valuation. Instead, the IPO is reportedly oversubscribed and will price
When a major IPO like Lyft comes along with a market cap over $20 billion, it instantly becomes a significant portion of the market. For funds that focus on IPOs or tech stocks specifically [e.g. the Renaissance IPO ETF ], Lyft will be an even greater portion of their benchmark. These buyers don’t question Lyft’s business model or its corporate governance, they unconditionally buy simply to gain exposure to a high-profile name.
A successful IPO for Lyft could mean more fees from forthcoming IPOs. In other words, the more demand underwriters drive for this deal, the better their position to get a cut of upcoming IPOs like Uber, Pinterest, Airbnb, and others.Poor Corporate Governance Is Now the Norm
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Lyft raises IPO price range ahead of Friday IPOLyft raised its expected price range to $70 to $72 per share, according to an amended S-1.
Lire la suite »
As Lyft kicks off IPO roadshow, investors still uncertain about profitabilityPotential Lyft investors are questioning how and when the company will make money.
Lire la suite »
What You Need To Know About The Lyft IPO: Strong Investor Demand And Strong ESG CharacteristicsSharing economy unicorn Lyft has turned to the public markets for growth capital. Accordingly, a wide range of investors will be able to purchase Lyft stock, which will trade on the Nasdaq, due to its strong overall ESG profile. The IPO is already oversubscribed.
Lire la suite »
Lyft to Price Shares Above Targeted Range of $62 to $68 in IPOLyft is expected to price its shares above the targeted range for its initial public offering, in a sign of strong investor demand ahead of the ride-hailing service’s debut.
Lire la suite »
Lyft increases IPO range, expects to charge $70 to $72 a shareLyft Inc. increased the amount it expects to charge for shares in its initial public offering Wednesday afternoon, raising the expected range to $70 to $72 a...
Lire la suite »
Lyft IPO From A Value Investor's PerspectiveLyft’s IPO promises to be one of the biggest initial public offerings of 2019. The principles of fundamental analysis and value investing apply to all companies, no matter how exciting, so let’s break down what we know about the Lyft IPO using the tried and true value investing approach.
Lire la suite »
Cramer: Fund managers are ditching high-growth stocks for Lyft, IPO seasonThe major indexes finished Wednesday in the red. Jim Cramer says expect the selling to continue as big funds build capital to buy IPOs
Lire la suite »
Lyft raises IPO price target as investor fret over missing outLyft Inc on Wednesday raised the price range for its initial public offering, as...
Lire la suite »
Cramer: Lyft IPO likely to surge, drawing investors back to whole stock marketLyft is slated to have a blockbuster initial public offering, drawing investor attention back to the stock market, CNBC's Jim Cramer said on Thursday.
Lire la suite »