Uber, Lyft's stock market performance shows that "the appetite for risk has decreased"



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<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The Lyft stock is down 39% from at its March 29 IPO price. & nbsp;Uber is down& nbsp; 18% since its beginnings on May 10th. The Slack is down about 28% since its direct listing on June 20th. The Fiverr network economy platform has dropped 47% since its IPO on June 13th. The Real Real's casual clothing website, which has climbed 40% on the June 28th IPO, is down 42% since then. "Data-reactid =" 15 "> Lyft stock is down 39% from the price of its IPO on March 29. Uber down 18% from its debut on May 10. The Slack is down about 28% since its direct listing on June 20. The Fiverr market economy platform has fallen 47% since its IPO on June 13. date, is down 42% since.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "And on Tuesday, the parent company of WeWork confirmed reports that & nbsp;he will hold his planned IPObut its goal is still to become public by the end of 2019. Since the publication of Form S-1, the climate around the society has become extremely negative. "data-reactid =" 16 "> And Tuesday, WeWork's parent company, The We Company, confirmed reports that it will wait for its planned IPO, but that it's still open to the public before the end of 2019. The climate with respect to society has become extremely negative since the publication of Form S-1.

And this is happening in a bull market.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "What happened to the march very animated from the & nbsp;unicorn IPOs? "data-reactid =" 18 "> What happened to the very enthusiastic march of unicorns' IPOs?

Uber, Lyft and Slack shares in the last 90 days.

If you ask Rebecca Felton, Senior Market Strategist for Riverfront Investment Group, it's simple: "I think the appetite for risk has certainly gone down."

Felton adds that the negative reception says a lot about "where we are in the cycle".

Since the beginning of the year, the S & P 500 index has risen by 21% and the markets have almost reached unprecedented highs. Yet fears of recession persist due to macroeconomic factors such as the US-China trade war and slowdowns abroad.

Some investors simply do not see the current attraction of acquiring shares in technology names that are losing money.

Annette Ribero, left, of San Jose, and Jeff Terry, of Sacramento, hold placards during a protest outside the Uber headquarters, on Wednesday, May 8, 2019, in San Francisco. (Photo AP / Eric Risberg)

All newly launched technology stocks did not underperform. Enterprise software such as Zoom has been very well received: the shares of the teleconferencing company have increased by 25% since its IPO.

Of course, WeWork is a unique case with its own specific problems: heavy losses, no clear plan to become profitable, and governance issues related to the power and control of CEO Adam Neumann. But analysts see WeWork as Part A of the IPO problem in the tech sector.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" If you take a step back, it's really that is it happening more and more in the IPO market? & nbsp;says Dan Ives, analyst at Wedbush. "And I think everything started with Uber and Lyft." Investors now view the large losses of these companies as a red flag and are less willing to believe that profitability will come. "Data-reactid =" 65 ">" If you step back, that's really what's happening more and more in the IPO market, "says Dan Ives, an analyst at Wedbush." ​​And I think it all started with Uber and Lyft. red flag, and are recently less willing to believe that profitability will come.

WeWork, says Ives, has now become "the child of the poster" for the whole pack of unhealthy unicorns.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Daniel Roberts is a senior writer and host at Yahoo Finance. Follow him on Twitter @readDanwrite."data-reactid =" 68 ">Daniel Roberts is a senior writer and host at Yahoo Finance. Follow him on Twitter @readDanwrite.

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