3 Broken IPOs That Should Bounce Back in 2019

The major market exchanges have been buoyant through most of 2019, and that usually translates into success for Wall Street debutantes. Sure enough, most IPOs have gained ground this year — including a few that have more than doubled.  Winners outweigh the losers among the rookie class of 2019, but that still finds 31% of this year’s new offerings trading below their IPO prices…

Lyft (NASDAQ:LYFT)SciPlay (NASDAQ:SGMS), and Uber Technologies (NYSE:UBER) are some of this year’s new stocks that are now broken IPOs. Let’s crack open the hood to see why all three engines aren’t running the way they should.

Lyft: Down 29%

The country’s second-largest ridesharing service has been a bumpy ride for investors, sliding in five of its first six full weeks as a public company. Lyft is putting on a great show when it comes to revenue growth. Its top line more than doubled in 2018, and lived up to the hype by soaring 95% in its first quarterly report as a public company last week.

The problem with Lyft is that steep losses are mounting. It also doesn’t help that Lyft hit the market at a valuation of $23 billion, a price tag that public investors feel is too dear for Uber’s feisty but distant rival. The market has lost its appetite for both stocks, but Lyft is worth keeping an eye on as the hungry competitor that is nibbling away at Uber’s dominant market share.

SciPlay: Down 6%

Spinoffs tend to be popular with investors, especially when a company carves out a faster-growing segment so it can trade on its own. Gaming and lotto tech specialist Scientific Games took SciPlay public earlier this month, hoping that its casual gaming app business would become a hot IPO. The new offering disappointed through its first six days of trading.

Growth is…

Continue reading at THE MOTLEY FOOL

 

Leave a Reply

Your email address will not be published. Required fields are marked *