Today, I want to share one of the most important charts I reviewed this weekend. It’s a daily chart of Lyft (NASDAQ: LYFT). And yes, it includes relatively little information. But the story that small amount of information tells is big. That’s because, just 10 days after the first trade, the stock fell as much as 20% below its offering price. Take a look… As Lyft was falling, its rival Uber announced plans to begin trading at a valuation of $90 billion to $100 billion. That seems steep for a company that’s yet to earn a profit on operations, but… Read More
Today, I want to share one of the most important charts I reviewed this weekend. It’s a daily chart of Lyft (NASDAQ: LYFT). And yes, it includes relatively little information. But the story that small amount of information tells is big. That’s because, just 10 days after the first trade, the stock fell as much as 20% below its offering price. Take a look… As Lyft was falling, its rival Uber announced plans to begin trading at a valuation of $90 billion to $100 billion. That seems steep for a company that’s yet to earn a profit on operations, but it’s well below the $120 billion the company expected to be valued at as recently as November. These two stories indicate that investors are wary about the rush of initial public offerings (IPOs), which can be a sign of a market top, as I wrote about a few weeks ago. #-ad_banner-#You might remember that I shared research from the paper “Using IPOs to Identify Sector Opportunities” by Kevin Lapham that showed IPOs can point to tops in sectors. Lyft, Uber, and other IPOs are being classified as “tech stocks,” and that indicates it’s time to closely follow the NASADQ 100… Read More