Category Archives: IPO

Lyft is kicking off its IPO road show and expects to raise as much as $2,1 billion

A lot of unicorns are coming into the market and Lyft is the next to go public. It is an on-demand transportation company primarily providing ride-haling services like Uber. The company was launched in June 2012 and operates in approximately 300 U.S cities.

Lyft is kicking off its IPO road show this month and their goal is to get on the public market in April. The valuation is about $23 billion for Lyft and thats way beyond Ubers valuation of $150 billion. Lyft will be listed on Nasdaq under the ticker LYFT:

Lyft expects to raise as much as $2,1 billion through the sale of stock in a price range between $62 and $68. Not all of their shares will be sold to the public and they will hold less than half the votes among shareholders. So far, Lyft has collected about $5 billion in total private equity investment to date.

Revenue last year came in at $2,2 billion and their growth have skyrocketed by about 500 percent since 2016. Their losses are also skyrocketing while the loss last year reached $911,3 million. Lyft lose twice as much as their competitor Uber.

The venture capitalists have so far funded the company and now it is the publics turn. And Lyft need cash now. The companys cash and cash equivalents fell 53 percent to about $518 million during the course of 2018.

Lyft is like Uber disrupting the taxi industry but also the way people move around. The taxi industry as we know it today will change dramatically. Lyft and Uber`s business model will change the way people think about a vehicle and how they move around.

Not only that. We are not far away from self-driving cars, and that will be a huge game changer. And when that day comes, what will be the difference between Lyft and Uber? On top of that; they will face a lot of competition from established automakers.

You can imagine how it will be in the market if automakers like Tesla are joining the business by selling people rides to the people instead of selling them cars? What car do you prefer on your ride?

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Aston Martin is planning to go public in London next year

Aston Martin is planning to go public as soon as possible, and it can happen already next year. If that happens, Aston Martin will be listed in London and not in New York. It seems like Aston Martin is following Ferrari`s success.

Ferrari went public in 2015 and the stock is up over 60 percent since then. Aston Martin is a luxury brand just like Ferrari and they have both similar vehicles and price strategy. An initial public offering can be very profitable for Aston Martin.

 

 

Aston Martin is a British manufacturer of luxury sports cars and grand tourers. The brand was founded in 1913 by Lionel Martin and Robert Bamford. Their sport cars are regarded as a British cultural icon.

Aston Martin is associated with expensive grand touring cars in the 1950s and 1960s, and with the fictional character James Bond following his use of a DBS model in the 1964 film Goldfinger. Aston Martin has held a Royal Warrent as purveyor of motor cars to HRH the Prince of Wales since 1982.

Aston Martin`s valuation could be similar to Ferrari which is about $2,3 billion pounds. The company has 1,850 employees and a revenue of £593,5 million last year.

The company said a new factory in Wales will produce a sport utility vehicle which is called DBX, and that will be a «practical and family friendly» vehicle and not a luxurious and fast one. They will also expand with a push into yachts, apartments and handbags.

Aston Martin`s fourth-quarter results jumped and they shipped 155,000-pound DB11 models. The firm said they expects a full-year EBITDA to increase to 165 million pounds which is a great jump from 101 million pounds last year.

The main shareholders are Investindustrial (37,5% stake), with Kuwaiti companies Investment Dar and Adeem Investment Co.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Will Snapchat be the next Facebook?

Snap is going public. No, I`m not talking about the pop stars with the super hit “I got the power”. This is something different. A different power. But how powerful are Snap Inc actually? Do you really think that Snapchat will be the next Facebook?

Let`s take a closer look at some real facts. I have made a picture of some of the most loved firms in the social media universe, and this time I will compare Snap with Facebook and Twitter. As you can see from the chart below, Snap look more like Twitter than Facebook. Take a look below.

 

 

compared

 

 

As you can see from the chart above, Snaps cost follow Snaps revenue. Its positive to see that their revenue grew from $59 million to $405 million. Thats a whopping 590% over the same time. But the drawback is their high cost structure. Their net operating profit after-tax fell from -$344 million in 2015 to -$498 million in 2016.

You do already here understand that Snap is not the same as Facebooks business model. Revenue goes up while their profit goes down. Snaps valuation is about $20-25 billion, with a revenue of $405 million, and an operating loss of -$520 million.

Facebooks valuation when they went public was much higher with $3,7 billion in revenue, and an operation income of $1,75 billion. Facebooks valuation at that time was $90-105 billion, but as you may know, the stock traded down after the IPO.

You also may know the story of Twitter. Right up, and right down again. Will Snap follow Twitter? Take a look at the numbers. They are very similar. Revenue was $448 million, with an operating loss of -$93 million.

Twitters valuation at that time was $18-25 billion, but people said it was too much. Many investors said the right valuation was half of that; only $10 billion. Snaps trailing sales valuation was 62x, which is about the same as Twitter`s 56x.

Twitter had 100 million DAUs when they went public, while Snap has about 158 million. What is that compared to Facebooks 483? It will be hard to be a new Facebook.

Snap are going public on Thursday.

 

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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The parent of Snapchat are going public

Snapchat is one of the biggest favorite apps in the social media universe at the moment. Its founders Evan Spiegel and Bobby Murphy filed confidentially to go public with SEC late last year, and now they are ready to be traded on the New York Stock Exchange under the ticker SNAP.

Snap`s revenue rose to $404,5 million, which is eight times higher than their revenue in 2015. In Q4 Snap had 158 million daily active users (up 48%), and many of my friends and family members are one of them. 2,5 billion Snaps are created every day.

 

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Snap Inc is a camera company, and in the SEC filings they say: “We blive that reinventing the camera represents our greatest opportunity to improve the way people live and communicate.

Our products empower people to express themselves, live in the moment, learn about the world, and have fun together».

Worldwide advertising spend is expected to grow from $652 billion in 2016 to $767 billion in 2020. The fastest growing segment is mobile advertising, which is expected to grow nearly 3x from $66 billion in 2016 to $196 billion in 2020.

Snap belive that one of the major factors driving this growth is the shift of people`s attention from their televisions to their mobile phones. According to Nielsen, people between the ages of 18 and 24 spent 35% less time watching traditional television in an average month during the second quarter of 2016 compared to the second quarter of 2010.

A huge difference between Facebook at Twitter is that Snap Inc doesnt have their own server farm, which makes it more expensive which means Snaps earnings can look much lower that those who have their own server farm.

Snap Inc lost $514 million in 2016, which is up from about $373 million. Some of that money goes to Google because Snap Inc rents storage and server space from them. New legislation that would change U.S, or foreign taxation of international business activities or other tax-reform policies could also seriously harm their business.

Benchmark Capital owns about 10% og the company. Lightspeed Venture Partners owns 8,3%, and Institutional Venture Partners owns 4%.

Snap are looking to raise up to $3 billion, and Snaps offering is being led by Morgan Stanley and Goldman Sachs. Morgan Stanley won the desired «lead left» position on the prospectus. The bank also led Facebooks initial public offering.

 

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Fitbit IPO thursday

Fitbit are ready to go public and the pioneer in wearable fitness-tracking devices will raise more than $600 million as soon as later on today, and this will be the fifth-largest U.S IPO in 2015. The company will go public tomorrow, on thursday.

Innovalon Holdings raised $685. GoDaddy raised $520, while Etsy raised $307. As you can see, Fitbit would be one of the largest tech debuts so far in 2015.

 

 

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Some investors are sceptical about the company and its shares. Are they able to compete against Apple Watch, they said? According to Nasdaq their share price is set to $17 – $19 each share, and shares offered/outstanding is 34,500,000.

The company has a strong revenue growth and annual profit, and there is a strong buzz among investors before they go public, and this is building up a strong demand for Fitbit`s shares. The firm will be valued at $3,7 billion with its estimated price range of $17 – $19 a share.

Fitbit doubled the number of devices sold to 10,9 million from 4,5 million between 2013 and 2014. Revenue tripled in the same period. Net income for 2014 came in at $132, on $745 million in revenue. It is expected to see revenue at $1,4 billion in 2015 and $1,7 billion in 2016.

Fitbit is more like GoPro Inc. GoPro went public last year and the stock more than tripled in October last year. Fitbit has a lower valuation and trade at 21,6 times the past years reported earnings through March 31, compared with 82 times for GoPro, FactSet data show.

Some Fitbit customers has experienced an allergic reaction on their wrists, but others are obviously happy with the new product like the U.S President Barack Obama which is a user of this «hot new trend» right now.

The wearable devices can track daily steps calories burned and floors climbed, as well as sleep duration and quality. Fitbit have many different wearable devices and some of them can track your heart rate and collect information about distance, speed and exercise routes.

I have had my wearable device in 20 years, but now it has become mainstream. A hot trend. I will be very surprised if this products over goes the mobile trend. A mobile phone is a «must have», but a wearable device like Fitbit is a «funny-thing-to-have».

Fitbit will start trading Thursday morning on NYSE under the symbol «FIT».

 


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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication. UA-63539824-1.

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