Re:Lyft prices IPO at top of range
by Judgmentality on Friday March 29, 2019 @03:44AM
(#19519847)
I agree I don't understand how a company seemingly built on backwards business fundamentals can be valued so highly, but I disagree it will be only a couple of weeks before the market adjusts the price accordingly. I think it will take much longer than that, probably closer to a couple of years of a slow downward trend with lots of volatile spikes.
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I would expect the same, at least for Lyft.
Uber is a bit of a different beast. It's valuated much higher, and it banked a lot of that valuation (in my perception at least) on the perspective of getting self-developed fully automated driving capability to the market and thus having an edge (and an actual moat) to be used to finally reach profitability by eliminating the costly drivers.
Thus I would expect its valuation to stay high for a while, but drop sharply as soon as the "fully automated driving is right around the corner" bubble pops for real.