January 18, 2020 Real Estate Publication

Lyft co-founder on stock plunge since IPO: ‘I feel a deep amount of responsibility’

Lyft co-founder and President John Zimmer, acknowledging the rough ride on Wall Street since their March initial public offering, said on Wednesday that he believes the stock is a good buy right now.

“I care about our employees that have jobs from us, that in some cases equity from us,” Zimmer told CNBC’s Wilfred Frost from the RBC tech conference in New York City. “I feel a deep amount of responsibility.”

However, he said, “I feel like the stock is undervalued. We’ve had three quarters of beating expectations, and over time people will see us put up more numbers and it will solve itself.”

Lyft priced its IPO at $72 per share on March 28. When trading started the next day, the stock was up as much as 23% during its first session, before closing just 8.7% higher. In early April, Lyft bounced around near its offering price. But since then, it plummeted nearly 40%, as of Tuesday’s close. It’s one of the worst-performing IPOs of the year.

Lyft President John Zimmer (R) and CEO Logan Green speak as Lyft lists on the Nasdaq at an IPO event in Los Angeles March 29, 2019.

Mike Blake | Reuters

Asked whether he thought the company priced the IPO too high, Zimmer said, “Over our course of history, we’ve made a lot of our investors a lot of money,” expressing confidence that the company will be able to get the stock on track.

Last month, Lyft reported a $1.57 per-share loss in the third quarter that was smaller than analysts had forecast on better-than-expected revenue of more than $955 million. The company also raised guidance on fourth-quarter and full-year revenue.

However, Lyft’s net loss of $463.5 million during the third quarter was much wider than the net loss of $249.2 million a year ago. The company blamed the increase in net losses on $246.1 million in stock-based compensation and related taxes tied to its IPO.

Watch the full interview with Lyft co-founder and President John Zimmer on Wednesday afternoon at 3 p.m. ET on CNBC’s “Closing Bell.”

in News
Related Posts

Amazon reportedly wants to turn your hand into a credit card

January 18, 2020

January 18, 2020

People shop at the newly opened Amazon Go Store on May 07, 2019 in New York City. The cashier-less store,...

Hudson Yards haters have lost their minds — over a fake wall

January 18, 2020

January 18, 2020

Absent any sensible reason to condemn Hudson Yards, the vast project’s innumerable detractors came up with a laughably hypothetical one...

NBCUniversal revealed a critical number about Peacock that shows why media companies are walking slowly into streaming

January 18, 2020

January 18, 2020

Toward the end of NBCUniversal’s two-hour long presentation of its Peacock streaming video service Thursday, the media and entertainment company...

How hackers are making millions — legally

January 18, 2020

January 18, 2020

The term “hacker” generally brings to mind a lonesome, hooded figure, operating in the dark, stealing our money or personal...

Hot Property: French Montana looks to double his money on Hidden Hills home

January 18, 2020

January 18, 2020

Rapper French Montana is shooting for the stars in Hidden Hills. Four years after buying Selena Gomez’s Mediterranean mansion for...

Actress Bella Thorne has a thing for roses

January 18, 2020

January 18, 2020

Guests stepping into the dining room of Bella Thorne’s Sherman Oaks home might find it hard to believe the actress...

Home of the Week: King of the hill in Silver Lake

January 18, 2020

January 18, 2020

At nearly 4.5 acres, this estate is among the largest residences in the Silver Lake neighborhood of Los Angeles. A...

Buy these top stocks ahead of earnings, including Netflix and Guess, Wall Street analysts say

January 18, 2020

January 18, 2020

Confetti falls as Lyft CEO Logan Green (C) and President John Zimmer (LEFT C) ring the Nasdaq opening bell celebrating...

A theory on who’s doing all the buying that’s pushing stocks higher and higher

January 18, 2020

January 18, 2020

The insistent refrain “new all-time record” has been played so often recently that it sounds like a broken record. For...

Andrew Yang sounds off on ‘frothy’ private market and ‘overvalued’ stocks

January 17, 2020

January 17, 2020

Fluorescent shipping containers, billiard tables atop AstroTurf, and his signature “MATH” campaign signs plastered to the walls greeted Democratic presidential...

As stocks hit more and more records, there are signs traders may be getting way too euphoric

January 17, 2020

January 17, 2020

Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., January 15, 2020. Brendan...

Soccer star Landon Donovan’s former compound lists in Manhattan Beach

January 17, 2020

January 17, 2020

About a mile from the water in Manhattan Beach, a two-home, double-lot compound once owned by U.S. soccer star Landon...

Federal agency looking into Tesla driver complaints of sudden unintended acceleration

January 17, 2020

January 17, 2020

Tesla Model 3 Source: Tesla A division of the U.S. Department of Transportation is looking into driver complaints that Tesla...

Execs tell Congress how they’ve been burned by tech giants in a rare public rebuke

January 17, 2020

January 17, 2020

On Friday, executives from four companies aired their grievances about the Big Tech giants to Congress without the protection of...

Onetime modernist haunt of actor Jeff Chandler sells in Rancho Mirage

January 17, 2020

January 17, 2020

A Rancho Mirage home where film actor Jeff Chandler, known for his Oscar-nominated performance as Cochise in the 1950 film...