LYFT
- Thread starter kj5159
- Start date
Lol I wouldn't be surprised. Driverless tech is already heavily incentivized, I don't think anything can speed it up at this point. Wouldn't surprise me if San Francisco and other very liberal places start doing something like this also, Uber and Lyft already really needed to expand margins somehow and this is a nice kick in the pants to that.
Lyft started end march at 82, now trading at 53... Soros played them for a fool!
https://www.bloomberg.com/opinion/articles/2019-05-07/lyft-s-ipo-was-a-little-awkward
Use outline.com for paywall if you hit it
It all makes me a little nervous but maybe it could work. The lockup obviously prohibits hedging, and Soros apparently did sign the lockup, but if he did the hedging before he signed the lockup then there’s no problem. I guess. And if Soros bought the stock from Icahn at $60 before the IPO, and hedged it in the $70s or high $60s during the first few days of trading, he did great; the stock fell rapidly from there and is now in the low $60s.
And if it did go something like this, you can see why Lyft (and its banks) would hate it. Not only would Soros’s counterparty bank be selling a fair bit of stock during the volatile first few days of trading to hedge the trade, but also the story that Lyft told to prospective investors in the IPO—a story about how its early investors were locked up and couldn’t sell or hedge for six months—was not quite true, because Soros found a loophole. The people who bought stock in the IPO, thinking that insiders were all locked up, and then found out that they weren’t and were dumping stock, have some cause to complain, not only about Soros but also about Lyft.
https://www.bloomberg.com/opinion/articles/2019-05-07/lyft-s-ipo-was-a-little-awkward
Use outline.com for paywall if you hit it
It all makes me a little nervous but maybe it could work. The lockup obviously prohibits hedging, and Soros apparently did sign the lockup, but if he did the hedging before he signed the lockup then there’s no problem. I guess. And if Soros bought the stock from Icahn at $60 before the IPO, and hedged it in the $70s or high $60s during the first few days of trading, he did great; the stock fell rapidly from there and is now in the low $60s.
And if it did go something like this, you can see why Lyft (and its banks) would hate it. Not only would Soros’s counterparty bank be selling a fair bit of stock during the volatile first few days of trading to hedge the trade, but also the story that Lyft told to prospective investors in the IPO—a story about how its early investors were locked up and couldn’t sell or hedge for six months—was not quite true, because Soros found a loophole. The people who bought stock in the IPO, thinking that insiders were all locked up, and then found out that they weren’t and were dumping stock, have some cause to complain, not only about Soros but also about Lyft.