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Lifting IPO is a pure effort on the US rideshare market



The Lyft IPO, which may come next month, can serve as an icebreaker in the frozen IPO market. US offerings have plunged – mainly as a result of the longest government closure in American history.

The documents will give Wall Street a glimpse of whether Lyft is worth the $ 25 billion valuation that it allegedly seeks. The key questions are how close Lyft is to achieving profitability, how quickly the firm steals market shares from Uber and the risks these companies face.

Lyft's IPO filing shows how, unlike Uber, it's simply focused on the thriving US ridesharing market.

"Lifting is much more a game on a clean-play American equestrian market," said Asad Hussain, new technology analyst at PitchBook, a research firm covering private capital markets. "It's a cleaner growth story."

It is true that Lyft has pushed his toes to bicycles and scooters, including by buying motorcycle operator Motivate.
  The IPO market is still in sleep mode. Blame the government's shutdown and market abuse
But Uber, the more mature company who allegedly seeks a valuation of up to $ 120 billion, spends heavily on expanding into overseas markets and new areas such as delivery (Uber Eats), shipping (Uber Freight) and micro mobility with services such as JUMP electric scooters.

Uber's strategy could pay off by making it a one-time business for all transportation needs. But it also poses dangers and puts pressure on Uber's margins.

"Lifting stays away from the untried markets like delivery and shipping. This gives a much clearer growth story to investors," Hussain said.

Although ordering An uber has become commonplace for many Americans, ridesharing itself is still a relatively untested market.

"We haven't seen how it performs during a downturn. When you add all these other things, it muddy the water," Hussain said.

Financial results released earlier this month show that Uber lost $ 1.8 billion in 2018, compared to a $ 2.2 billion loss the year before. But the results also show that Uber's income growth also fell sharply.
The Lyft IPO story does not come with the luggage that has surrounded Uber. In recent years, Uber has been struck by countless scandals, including sexual harassment, alleged gender discrimination, and a pronounced civil society with founder and co-director Travis Kalanick.

For all these reasons, Lyft will probably gain a richer appreciation than Uber.

2nd Quarter GDP: On Thursday, the Bureau of Economic Analysis will release a long-awaited estimate of gross domestic product in the last quarter of 2018.

The planned release last month was delayed by the government's closure because BEA was not open as it would normally be to collect and analyze all the data involved in calculating economic growth. After a quarter in the second and third quarters, which came in at 4.2% and 3.4%, respectively, economists expect a worse number – forecasts now ranging from the Atlanta Feds 1.4% to the New York Fed & # 39; s 2.35%.

3. Powell Speaks to Congress: Federal Reserve Chairman Jerome Powell will testify at a House Financial Services Committee meeting on Thursday and at a Senate Banking Committee hearing Friday.

Powell has been trying to calm markets over the last couple of months by suggesting that the Fed will be on pricing. President Donald Trump has criticized Powell and the Fed for raising interest rates by 2018.

4. Earnings Earnings: Some of the country's largest dealers will tell Wall Street this week how they have done during the holidays.

Home Depot and Macy's quarterly earnings report on Tuesday, while Best Buy, Lowe and L Brands arrive Wednesday. JCPenney, Nordstrom and Gap land on Thursday.

Investor's expectations are high for all these companies. The economy is strong and the dealers make an insignificant part of the sale during the holidays. Wall Street will be looking for any cracks in their businesses or signs of slowing down.

5. Coming next week:

Tuesday – Home Depot ( HD ) Macy & # 39; s ] ( M ] Papa Johns ( PZZA ) and JM Smucker ( SJM ) ] profit, Powell BBY LOW Wednesday – Lowe s and Campbell Soup ( CPB ) earnings, Powell appeared before the House Financial Services Committee
Thursday – GDP report, ] JCPenney ( JCP ) PG & E ( PCG ) Gap ) Nordstrom () JWN ) and Anheuser-Busch ( BUD ) income
Friday – Marriott ( MAR ) earnings

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