LYFT’s Wild Ride

Published on
April 10th, 2019
Duration
9 minutes

LYFT’s Wild Ride

Trade Ideas ·
Featuring John Jannarone

Published on: April 10th, 2019 • Duration: 9 minutes

John Jannarone, editor in chief at IPO Edge, returns to Real Vision to discuss one of the most popular & expensive IPO’s this year: Lyft. He notes the absurd valuation, highlights several risks to the growth story and specifically reviews how to play his bearish thesis, in this interview with Jake Merl. Filmed on April 9, 2019.

Comments

Transcript

  • JA
    Jesse A.
    18 April 2019 @ 15:23
    hah looks like it almost hit his target already...
  • NC
    N C.
    11 April 2019 @ 05:26
    To short LYFT, why not sell way in the money call options? Roll them over by expiration. Time decay should more than offset spread. Requires high level margin account. No borrow fees. Usual naked options & short risk assumed.
  • EF
    Eric F.
    11 April 2019 @ 02:52
    I think this is a great idea. I also think he’s actually too optimistic about long-term prospects. Wouldn’t surprise me if this company is never profitable. It feels like a typical poster child for the low interest rate environment that has enabled not the best ideas to go forward. Uber and Lyft need autonomous driving to remove driver costs to make their business models work, but I think that technology has a ways to go outside of the California bubble that has driven Tesla’s (relative) success. I do think the trade structure is questionable though and not sure about timings. Be interesting to see what impact lock-up expirations have on IPOs recently. Would make a good RV video.
  • DP
    David P.
    11 April 2019 @ 00:23
    Good interview. Insurance risk not talked about often...
  • Sv
    Sid v.
    10 April 2019 @ 22:37
    on the money.
  • PW
    Paul W.
    10 April 2019 @ 18:54
    I agree with his thesis but at the moment, between the borrow fees and the price of put options, I don't see a practical way to accomplish it. Lyft even had a hissy fit over rumors of a derivative designed to give short exposure to their stock - it seems to me they would have a full-blown legal seizure if one comes to market. Until the lockups expire, I think it is going to continue to be extraordinarily difficult for a small investor to short Lyft.
  • AA
    Ali A.
    10 April 2019 @ 11:50
    I agree with John on his fundamental analysis long term but market isn’t really driven by fundamentals but crowd psychology, which is very optimistic right now. Short sellers will be burnt as stock bounces back goes above its initial market price but when the crowd’s mood shifts, the stock will collapse!