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Lyft Jumps 20% in Trading Debut: Hot IPOs and ETFs

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Lyft shares jumped about 20% from its IPO price of $72 in trading debut this morning. The ride sharing company leads the parade of highly valued tech start-ups rushing to go public this year.

These IPOs could raise over $100 billion this year, the biggest amount ever! Why are so many companies rushing to market this year after remaining private for a long time and are valuations justified?

Lyft had $2.2 billion in revenue last year and a net loss of $911 million. The company has approximately 39% share of the ride-sharing market in the US. The price surge gives it a valuation of almost $30 billion.

Amazon (AMZN) and Microsoft (MSFT) were worth about $500 and $780 million respectively, when they went public. Google (GOOGL) had a valuation of $26.4 billion. Facebook (FB - Free Report) was much bigger-- $104 billion at its IPO. However, both Google and Facebook were profitable before IPO.

Lyft’s share price pop reminds me of another hot IPO—Snap (SNAP)—that went public at $17 about  two years ago and saw the price soar to more than $26 on debut. It is now trading close to $11. Could Lyft be the next Snap?

What are Lyft and other hot unicorns really worth?

Find out on the podcast.

Uber, Lyft, Other Hot IPOs & ETFs: What You Need to Know (Part II)

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