Well I don't want to poop on the parade, but isn't it a little bit thoughtworthy how rewards are distributed in our modern economic system?
A company that hasn't made money is making its founders generational wealth, as well as the investors. (Actually is this wrong? Googling seems to suggest they lost money in recent years. Point is the same though.)
Lyft might never make money, and yet people involved are making out like bandits. I get that some things will lose money before they make money, and it's not up to me to decide whether a particular thing should be invested in by other people.
But it seems if this trend continues, making money becomes more about getting investors to think they're gonna make money than about making a profitable business?
I was thinking about the same thing.
It seems this stock is completely disconnected from the fundamentals and that's what allows it to go so high (And make the founder//VCs rich).
If we push this logic to the extreme, what would prohibit a stock to be completely uncorrelated to the company it represents? What if at some point a stock is traded based purely on the hype and the idea that someone else will eventually buy it for even more eventually later on? This seems to be what's going on with this IPO, it is 100% speculation that someone dumber than you will eventually buy it for even more.
Back in the days dividends and voting rights were used to keep the stock inline with the company's fundamental, but in this specific case, why is the stock related at all to the company since there are no voting right nor dividends?
A company that hasn't made money is making its founders generational wealth, as well as the investors. (Actually is this wrong? Googling seems to suggest they lost money in recent years. Point is the same though.)
Lyft might never make money, and yet people involved are making out like bandits. I get that some things will lose money before they make money, and it's not up to me to decide whether a particular thing should be invested in by other people.
But it seems if this trend continues, making money becomes more about getting investors to think they're gonna make money than about making a profitable business?