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Jim Cramer: Lyft's IPO Lockup Expiration Could Open the Floodgates

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HemiDodge
361
 Posted 1 year, 4 months ago

Founders and employees (those with stock options) are expected to dump the stocks to cash in.  Can their stocks handle it?

When reporting earnings, Lyft announced its IPO lockup period will expire on August 19, meaning the market could see a flood of Lyft shares hit the wires.

"It's going to be a problem," Jim Cramer said, adding, "more supply is not good."

Everyone's going wild over this. Maybe it's a just a hype.

https://www.bizjournals.com/sanfrancisco/news/2019/08/08/lyft-reshuffles-its-ipo-lockup-for-selling-shares.html 

https://www.yahoo.com/lifestyle/lyft-ipo-lockup-period-will-end-early-204009820.html 

https://qz.com/1688882/lyft-insiders-could-book-gains-when-the-ipo-lockup-expires/

Comments

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    outlandish
    205 Rider Driver
     1 year ago

    This always happens after an IPO. Lyft shares will be fine. The bigger problem for Lyft is the brain drain that will come with it as early employees cash out and leave the company. And who can blame them?

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    Uberserge
    1286 Rider Driver
     1 year ago

    Do opposite of everything JC says, I'm a buyer of Lyft at $2.62, same proce as a minimum fare they pay a driver.

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    DaimsLer
    264
     1 year ago

    They say this every time a company goes public with a large volume of stock options. The potential sales is all considered in the IPO price as well as analysts' forecasts. An article like this gets clicks and it's basically customary for journalists to release these every time a high-profile IPO happens.