Lyft is burning the rubber.
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Wall Street is looking for a $150 billion valuation for Uber, but only a $23 billion valuation for Lyft. After 19 rounds of fundraising, it bares the question, is Lyft trying to go public too soon? And if so, what does that mean for potential investors?
TrendMacro CIO and Founder Donald Luskin says both Lyft and Uber have “a vast addressable market,” adding, “it turns every car into a driverless car where the difference is I don’t have to drive it personally.”
Patriarch Organization CEO Eric Schiffer said investors are making a mistake if they buy into Lyft or Uber, suggesting it’s far too soon. Unlike Facebook, which built up a network, “people can switch very easily between the two,” according to Schiffer. He believes Lyft is overvalued and investors will have to wait two or three years at a minimum before they see any upside returns.
“It’s a unicorn without even a horn.”
However, Luskin believes investors are making a return to tech stock and in the long term, it’s a sector that makes sense. A sector that investors buying into the market can have confidence in despite some bumps in the road along the way.