Lyft IPO will open floodgates for other tech companies: Varney
FBN's Stuart Varney on Lyft's plans to go public.
Good news: You're going to get your chance to invest in a whole new range of technology companies. It starts with Lyft, the ride-sharing company. The Wall Street Journal reports they will detail their plan to go public soon: They're private now, but by the spring you can buy shares if you wish.
This will open the floodgates to other tech companies that are building on the internet. Uber, for example, and then probably Airbnb.
Now there'll be lots of argument about the initial price of these shares, and who will make the money. There's plenty of criticism about insiders getting filthy rich, and underwriters making out like bandits. There’s always arguments about that. The socialists will be appalled and outraged that people with good ideas get to make a billion!
But my point here is not the money. It’s financial democracy. I want ordinary, everyday people to have the chance to invest in great new things. If you think Lyft is a good company offering a great new service, now you can buy in. You can take a chance. You can take your shot.
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Personally, if I were Lyft's management, I’m not sure I would be doing this. Going public means you will have an army of lawyers and regulators poring over everything you do or say. And your stock price will be subject to the social network-driven rumor mill, which can be vicious.
But I’m not a Lyft manager. I'm a potential investor, and I’m happy to be given the opportunity to invest in yet another group of American technology companies that are showing the rest of the world how to do it!