Ride sharing service, Lyft’s stock price opened at 21% higher at $87.24 in its NASDAQ debut on Friday, 29th March 2019. Lyft, valued over $1 billion, beat Uber in the race to go public on Friday.
Lyft’s success goes on to prove that the sharing economy will continue to grow, and despite Uber’s market domination, there is room for other companies to enter the consumer transportation market.
The opening stock price today, puts Lyft’s valuation at $30 billion (whereas Uber is valued at $120 billion).
With an investment of $500 million by General Motors (GM) in Lyft back in 2016, GM gained quite a bit in this IPO, the potential of winning bigger in the future. They are also Lyft’s biggest investors.
Lyft Stock Details
The particulars of the IPO included 32.5 million Class A shares common stock at $72 per share.
Here is a timeline of how Lyft’s stock price skyrocketed in the last few days:
- Lyft’s stock price was originally estimated to be between $62 and $68
- Due to strong investor demand on Wednesday, the estimate increased to a range of $70 to $72 per share
- It skyrocketed on Friday over 21% of the expected price to reach $87.24 per share
Is Lyft Making Profits Yet?
Simple answer. Lyft is not profitable yet.
Although it has grown in overall user base, driver base, and app usage.y.
How Will Lyft Use the Money Raised from Friday’s IPO?
Primarily to fuel future growth:
- Develop new technology
- Build new products and services
- Working Capital
- Operating Expenses
Can I Buy Lyft Stocks?
You can buy Lyft stocks in the open market on the NASDAQ stock exchange starting today. But make sure you do your homework, don’t invest due to the media hype or because other people told you to do so.