The biggest U.S. gasoline price surge in years is running out of steam just in time for the start of the summer driving season.Energyread more
Stocks rose on Friday, but notched weekly losses as investors worried the U.S.-China trade war is hurting economic growth.US Marketsread more
The combination of mounting recession fears, bets on a more cautious Fed and a regular uptick in market volatility could spell more losses.Marketsread more
The therapy, Zolgensma, is a one-time treatment for spinal muscular atrophy — a muscle-wasting disease and leading genetic cause of infant mortality, affecting 1 in every...Biotech and Pharmaceuticalsread more
SpaceX has raised just over $1 billion in financing since the beginning of the year.Investing in Spaceread more
An analyst for Ark Invest, which has a major investment in Tesla, says recent drastic price-target cuts by others on Wall Street are missing the big picture.Investingread more
Former Foreign Minister Boris Johnson is seen as the bookmaker's favorite to succeed outgoing Prime Minister Theresa May.Europe Politicsread more
Apple bought Tueo Health, which was developing tech to help parents monitor asthma symptoms in children, using a mobile app and commercial breathing sensors.Technologyread more
United Airlines will take its 14 Boeing 737 Max jets off its schedule for another month, through Aug. 3, canceling another 1,290 flights.Airlinesread more
Trade could be a big factor for markets in the week ahead, but investors will also be attuned to fresh inflation data and the bond market, which is flashing new worries about...Market Insiderread more
Mississippi is one of several states that have moved to pass new restrictions on abortion this year.Politicsread more
When a stock is breaking down, market technicians are usually trotted out to guestimate the nearest support level(s). Support, is as the name implies, an area where the selling may slow, even subside and if that's at an oversold area, with too many newbie shorts betting against the stock, an area that we might expect a sizable bounce.
It is however, considerably more difficult to determine support or resistance for IPOs as they have virtually no trading history. But I said difficult, not impossible.
This brings me to the situation in the first of many Decacorns (valuation of over $10 billion) to come to market; Lyft.
As has been widely publicized, companies are remaining private far longer these days, as venture capital is plentiful. If used to be rare to see four rounds of funding, but today it is more then rule than the exception. Lyft has had nineteen rounds of financing in its seven-year history. At the end of 2015, General Motors led a round of 14 investors that raised $1 billion in its Series F round. The pre-money valuation at that raise was $4.5 billion. Three years later (June 28th, 2018), Fidelity led the nineteenth and final funding round (Series I) as an additional $600 million was raised at at pre-money valuation of $14.5 billion.
Then we had the high-publicized IPO for Lyft, in which the offering was oversubscribed to the point where the initial estimate of $62 a share was pushed higher and higher until the ride sharing company finally settled on a $72 a share offer of 30.77 million shares. This $2.2 billion pushed the initial valuation to about $20 billion (non-diluted, which means the restricted stock units, greenshoe etc are not counted) 38 percent above that final funding round just nine months earlier.
So as I read Seaport Global Securities analyst Michael Ward initiated coverage of LYFT at $42 a share I was not surprised. $42 is quite close to that final funding round, which on a non-diluted basis would be about $44.64 a share.