spot_img
8.5 C
London
HomeFintech NewsHow to purchase stocks in Lyft? Lyft stock forecast: Wait and see...

How to purchase stocks in Lyft? Lyft stock forecast: Wait and see before you invest!

Can I Buy Lyft Stock on Robinhood? Where To Buy Lyft Stock Online? You need a special account, called a brokerage account, to buy stock or other investments. If you don’t have one, you’ll need to open one. Like Robinhood. The most important step: deciding where to open your account.

It might be better sometimes to wait and see before investing.

Several brokers offer competitive options, and you’ll want to compare them based on the factors that matter most to you — things like the account minimum, trading commission (which is charged when you buy and sell a stock, like Lyft), other fees and overall investment selection.

TD Ameritrade
TradeStation
Charles Schwab
Fidelity
Interactive Brokers
Robinhood

Wait and see before you invest!

Your best opportunity to invest may be later. According to CNBC, while these companies have found their window to go public, your best opportunity to invest may be later. New offerings come with high risks and few guarantees. The longer you wait, the more likely you are to get a fair price, experts say.

For multiple companies, it’s the moment they’ve been waiting for: The window has opened for them to go public. You’ve probably heard the names, including Levi Strauss, which made its public market debut this week. Ride-sharing businesses Lyft and Uber, among other companies, are also teed up to go public in the coming months.

But if you’re thinking you want to invest in these stocks, experts generally have one word of advice: Wait. “IPOs aren’t just about, ‘Oh, I want to invest in the things I know,’” said Kathleen Smith, principal and manager of IPO ETFs at Renaissance Capital. “It’s about, ’How do I make money investing in these?″ “It doesn’t do any good to own something when you’re losing money in it.”

In today’s market, chances are that buying in on a newly public stock could be a losing proposition. Financial experts say there are several reasons why. You could already be at a disadvantage. Even though the stock is not yet public, you could already be behind. Just accessing IPO shares is difficult, Smith noted, because most shares will be allocated to big institutional clients of Wall Street firms.

They have already reached the peak

What’s more, many of the names going public now have waited longer to go public and seen their valuations surge during that time, said Nicole Tanenbaum, chief investment strategist at Chequers Financial Management. Uber and Lyft, for example, are considered unicorns, or startup companies valued at more than $1 billion. Along the way, they have raised large amounts of private funding. Uber previously raised roughly $20 billion in funding and is eyeing a $120 billion valuation when it goes public. Lyft has raised more than $5 billion and plans to be valued at $23 billion.

“When they do go public, much of the appreciation has already happened in the private markets,” Tanenbaum said. That means that earlier investors, who got in at a lower price, stand to see greater gains. “The upside for the public investor is much more diminished,” Tanenbaum said. Some companies that are going public these days — including Levi Strauss and Lyft — are pursuing a dual-class structure. That means that certain investors — notably company management — have preferential shares and voting rights compared to a separate common stock that typically comes with just one vote per share.

“In the long run, it’s not good,” Smith said. “If problems happen with the company, you want to be able to know the founders can’t just do what they want without some kind of checks and balances.”

Think of Facebook: Investors suffered losses

You might not be able to stomach the ups and downs. While many IPOs close up on their first day, that first day pop and subsequent run up is not guaranteed, according to Michael McKevitt, director of financial planning at Guillaume & Freckman. Think back to Facebook’s IPO in May 2012. The company went to market at a high price and investors suffered losses at the outset.

Be ready for multiple 50 percent declines

It took about a year for Facebook’s stock to get back to its opening price. Today, the stock’s performance would be considered a success — as long as you held on. “Even if you pick the right company, like Facebook, which has done amazingly well, you still had to put up with a 50 percent decline, multiple 40 percent declines, multiple 20 percent declines,” McKevitt said. “How many people bought it and held onto it through all of these moves?”

Investors would be wise to keep in mind that the lock up period could affect the stock price, said Megan Gorman, managing partner at Chequers Financial Management.  Lock up periods are a set amount of time, typically three to six months, when large shareholders are prohibited from selling their shares following an IPO. Once that time is over, that can sway the stock price. “You can sometimes see the stock price has a pull back — not always, but there can be — when the lockup ends,” Gorman said.

Is it ok to invest in a newly public company?

You could be investing the wrong way. All of those considerations mean one thing: Investing in a newly public company might not be the right decision for you — at least for now. “If you want to be the guy or gal at the cocktail party or the golf course saying that you bought one of those unicorns when they IPO’ed, as long as you go in with the expectation that it might not be the best investment you ever make … that’s great,” Gorman said. “But if this is your retirement money, if this is all of your savings, going in an IPO doesn’t make sense from a big picture perspective.”

According to IPOScoop reports, 2018 had seen 233 new initial public offerings, altogether collecting 54 billion dollars during their initial IPO sales, out which 10 companies reported returns by 100%, deeming the last year as rather successful for public offerings, so it is no wonder that more IPOs are joining the market in 2019.

Upcoming 2019 IPO List and Calendar: List of 14 Upcoming IPOs to Get Excited About in 2019: The year 2018 appeared to have been a perfectly fertile soil for IPOs, while the trend of issuing Initial public offerings doesn’t seem to be wearing off any time soon as there are numerous companies and startups have announced their upcoming public offerings.

Here is the list of by far announced upcoming IPOs for 2019 alongside IPO calendar.

Uber IPO: $120 Billion Value

Lyft might get an advantage as the company’s IPO date was already announced while Uber company still has final preparations to deal with.

It is expected to see the IPO go live in the first half of 2019, while the exact date is still unknown. The estimated value of the initial offering is set at 120 billion.

Palantir IPO: 40 billion dollars valuation

This data mining firm is said to have already spoken to Morgan Stanley and Credit Suisse on the potential IPO in 2019, while the initial issuance for this company’s public offering is expected to take place in the second half of 2019.

Estimated value of Palantir upcoming IPO is set at tens of billions of dollars, while the IPO is yet to be confirmed officially. Estimates claim that Palantir IPO is valued between 30 and 40 billion dollars.

Airbnb IPO: 30 billion dollars valuation

Airbnb is another one of startup giants that have seen an exquisite rate of growth in the recent years which is the reason why this room-listing platform where you can book your stays is said to be planning on going forth with direct listing so that the shares of the company would be sold directly to the public.

Estimated value of the company’s shares is set at 30 billion dollars, while the IPO should be released by the end of 2019 although the official date is not revealed yet.

Slack IPO: 10 billion dollars valuation

Slack, the well-known workspace messaging applications is another one of startups preparing to set their IPO to launch in 2019. Slack’s userbase is becoming impressive recording 45% of growth in May 2018, while the app is now counting 8 million users with 3 million paying subscribers.

The official date of the public offering for Slack shares is yet to be revealed, but the company already hired Goldman Sachs back in December 2018, so it is expected to see the IPO go live in 2019. Slack IPO is estimated at the value of 10 billion dollars.

Robinhood IPO: 5.6 billion dollars valuation

The famous feeless trading platform is now counting over 5 million accounts and is ready than ever to enter the IPO craze that have marked the entire 2018. The platform deals with both equity and cryptocurrency trading which allows it to approach a larger userbase, while Robinhood is said to be one of the favorite trading platforms for millennials.

During their pre-funding round back in May 2018, Robinhood managed to raise 363 million dollars, which pushed the estimates of their IPO to 5.6 billion dollars, expecting to see the initial sale in 2019 with no exact date announced by far.

Postmates IPO: 1.8 billion dollars 

Another startup with a quick growing user base is most certainly Postmates, while the company is taking a double-digit share from the food delivery market. Postmates, unlike UberEats for example, doesn’t only deliver fast food as you can also have them deliver other items from the local stores.

Later in 2019, Postmates is more likely going to release their public offering with the present estimate of 1.8 billion dollars and a great growth potential in the industry of food delivery set to reach 100 billion in total market cap.

Pinterest IPO: 700 million dollars in revenue

Managing to showcase an amazing growth through engagement and growing user base, Pinterest reportedly stated that 2018 ended in 700 million dollars in revenue with 50% of reported increases from year to year.

That way Pinterest became eligible for becoming one of the hottest IPOs in the market. Although the company is not commenting on their talks with the Securities and Exchange Commission, it is presumed that the company will have their IPO ready for issuance already in June 2019.

The estimates of the value of Pinterest IPO are predicting 12 billion dollars with some reports stating that Pinterest already raised 1.5 billion in pre-funding round.

Casper IPO: 16 billion dollars in revenue

The business of mattresses can’t be that exciting, however, the profits generated through this sector tell a different story to investors who are listening. Casper is one of the names in the industry reporting 50% margins with 16 billion dollars in revenue from year to year, which is how Casper is defying active trends in the market.

According to Fox Business interview, we can expect to see Casper issuing their IPO by the time 2019 comes to an end, expecting investors to show interest in holding Casper shares.

CloudFlare IPO: 3.5 billion dollars

A prominent name in the industry of cybersecurity and web services, CloudFlare is working with around 10 million web domains, which is why the company is planning on turning their large user base into a profitable and prominent IPO.

The company should go public with their initial offering by the end of the first part of 2019, while Goldman Sachs is said to be in charge of transaction that should exceed 3.5 billion dollars with the initial public sale of CloudFlare shares.

CrowdStrike IPO: 3 billion dollars

CrowdStrike is another cybersecurity company that have decided to release their IPO in 2019 and go public that way. The company earned their status among the companies within cybersecurity sector by creating special endpoint protection that have prevented many major hack attacks such as the one in the case of Sony attack or the attack on Democratic National Committee.

According to the latest reports, the company is planning to go public already in the first half of 2019, while the estimated value of CrowdStrike shares is set at 3 billion dollars.

Asana IPO: 1.5 billion dollars

Asana is one of the leading project management applications that managed to raise millions in the initial co-founding round back in 2008 when the company started out in the Silicone Valley.

The company most recently had an E funding round that brought 50 million dollars to Asana, placing the company among unicorns with 1.5 billion dollars in estimated value.

Although it is yet not certain whether Asana will be launching their IPO by the end of 2019 as they lack funds and the latest raised amount will be used for international expansion, Asana has a great potential of becoming one of the hottest IPO in the sector.

According to the company’s latest announcement; Asana IPO is not coming in 2019, they’ll be pursuing an IPO this year.

WeWork IPO: Managed to double revenues

WeWork is a sleek startup that deals with renting workspace in different buildings and locations and small and medium companies and is also one of the companies planning on issuing their initial public offering in 2019.

In 2018, the company managed to double its revenues, with 442 million dollars reported in the second quarter of 2018, but since the company is also reporting 723 million dollars in losses for the first quarter of 2018, although unconfirmed, the company might decide to issue an IPO in 2019 based on their immense growth potential.

Rackspace IPO: 10 billion dollars

Rackspace might ring a bell because this cloud computing veteran has been around for 20 years already, previously being a publicly traded company until the year of 2016 when a major acquisition worth 4.3 billion dollars took place and equity firm Apollo Global turned Rackspace into a private company.

According to May Bloomberg, major equity firm may be considering to start off fresh with a new IPO in 2019, with at estimates set at 10 billion dollars.

Together, the 14 potential IPOs for 2019, many of which have already been confirmed are worth around 300 billion dollars, with Uber and Airbnb being one of the definite favorites in the market.

Should I Invest Lyft IPO or Uber IPO in 2019?

The big debate amongst IPO investors right now is whether they prefer Uber or Lyft. Both companies might appear to offer practically the same services, but when you get into the details things become less clear.

Lyft is technically a “unicorn” with a valuation at over $1 billion, and Friday’s IPO included a lot of interesting information. Utilizing these new stats and some existing information, here are five big reasons why Lyft is a significant threat to Uber. According to CCN News, we prepared “5 Biggest Reasons to Choose Lyft IPO Over Uber in 2019”. Let’s have a look at it.

1. LYFT IS FOCUSED; UBER IS BLOATED

The principal difference between Uber and Lyft is size. While Uber is in nearly 70 nations worldwide, Lyft is only in the United States with around 300 cities running their services. Some might think that Uber is the superior investment because of its size, but that is not the case. With greater size can come greater expenses and increased operating risks. While Uber has faced (and continues) to meet a regulatory firestorm, Lyft’s sole presence in the US has allowed it to avoid most of the trouble that’s Uber has gotten itself in. Like a younger child watching an older sibling, Lyft has been able to learn from Uber’s mistakes. Yes, Lyft is making a loss just like Uber. Techcrunch.com reported:

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.

The leaner your business model, the easier it can be to avoid complicated set-backs. By focusing on the US, Lyft ensures that it only has to deal with a (mostly) business-friendly environment that champions investment. You can not say the same for Uber.

2. LYFT IPO GIVES IT CREDIBILITY

Let’s be honest; everyone’s biggest hang-ups over using a ridesharing service are safety. All you want is to get where you are going safely and efficiently. Both Uber and Lyft have made it their top priority. Clearly, in the early days when Uber dominated the landscape, it was the obvious choice. But as Lyft eats into Uber’s market share, it becomes more and more apparent that the consumers are legitimizing its smaller competitor.

By filing for an IPO, Lyft has been given an incredible amount of publicity with people regularly comparing it with Uber. Before the IPO talk, I barely considered Lyft at all, but Uber’s monopoly in my life is over. In a business where consumer confidence is king, being able to identify as a publicly traded company is worth its weight in gold.

3. DRIVERS CAN UTILIZE BOTH LYFT AND UBER

As a frequent user of rideshare services in Los Angeles, one of the key concerns I have faced is driver availability. No-one wants to stand on the side of the ride for 20 minutes in the rain only for the driver to cancel at the last minute with no other cars in sight. I have asked many drivers why they drive for the Company they do, and the answer is nearly always the same, that they couldn’t care less if its Lyft or Uber as they use both simultaneously. The point is that Lyft has successfully matched Uber’s payment and cost model for all but minor differences. Keeping drivers happy is huge for Lyft. Having enough active cars is a big challenge for a smaller, less well-known brand with fewer clients.

More drivers increase the number of riders, and Lyft can continue to effectively scale the number of cars on the road so long as drivers see a benefit in running both apps.

4. UBER ISN’T THE ONLY ONE INVESTING IN DRIVER-LESS CARS

One of the big selling points for Uber is that an investment in their IPO is more than investing in rideshare technology. It is also investing in Uber Eats and the more tantalizing driverless car technology. Lyft is also investing in driverless technology. They are matching Uber step for step into any progressive ideas for Urban transportation. While we can’t know who will have the most success with driver-less technology, Lyft is also a player. Its US-centric policy might help it to get cars regulated and on the road faster than Uber who will be dealing with multiple different regulatory bodies.

5. MOMENTUM IS WITH LYFT

People talk a lot about momentum in financial markets, and often it is entirely subjective. Just because something grew X amount last month doesn’t mean it will continue. It is often worth considering these trends however because they can offer some insight into consumer behavior. As you can see from this picture, Lyft has substantially eaten into Uber’s market share over the last few years. Focusing our attention on individual cities shows even more interesting statistics, as in Seattle Lyft is not far off 50%.

If Lyft can concentrate on the major US cities and achieve comparable market share down the road, then it could offer investors a more stable business model than Uber. Uber’s reliance on a sheer scale would make it more vulnerable to shifts in global market conditions. As Dan Sperling said to phys.org a while back,

“The only advantage of going international is just to be bigger, I think it’s absolutely sensible to stay focused on the U.S. market. It does mean it will be a smaller company, but the profitability will be just as much.”

It could also face arbitrary decisions by foreign governments that domestic investors might not see coming.

UBER VS. LYFT, BUT UNDERSTAND THE DIFFERENCE

While everyone wants to lump these two companies together, from an investing standpoint, perhaps that is the wrong approach. Yes, they offer the same services, but it is their independent ambition that they differ. Uber is a grand vision for global monopoly, while Lyft seeks to dominate domestically. For this reason, despite Lyft’s smaller scale, it might be the safer play. This is not to say that LYFT does not have its problems with slowing revenue and debt, but rather that with a history of scandals, Uber has more drivers, more riders – and more problems.

Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.
spot_img

latest articles

explore more