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5 IPOs Doing Better Than Lyft in 2019


- By Holly LaFon

Car ride-hailing service Lyft (LYFT) has disappointed investors with a 4.13% fall from its $72 stock price at its highly anticipated initial public offering Friday. With shares trading around $69.02 Tuesday afternoon, the company's starting valuation of $24.2 billion has shrunk to a market cap of $19.73 billion.

Despite its lack of profits, the popular startup that competes for market share with the dominant Uber attracted a litany of prominent investors, including Carl Icahn (Trades, Portfolio) and Daniel Loeb (Trades, Portfolio). Some observers paint a less rosy picture for the stock, though. While calling Lyft's IPO a "'watershed' event for the tech sector," Wedbush analyst Daniel Ives placed a neutral rating on the stock with an $80 price target.

"While the Street is very excited for the opportunity tomorrow to take part in the massive growth out of the ridesharing industry there are also a number of risks/uncertainty in our opinion for Lyft including: competitive pressures from leader Uber as well as rising competitive forces, lack of a path to profitability in the near-term, regulatory uncertainty, and positioning within the next generation autonomous driving arms race with Waymo and others well ahead of the company from an R&D perspective despite its Las Vegas fleet of autonomous vehicles," Ives wrote in a research note.

Other big names have floated the possibility of an IPO in the upcoming year, including Airbnb, Slack and Palantir Technologies.

So far in 2019, Levi Strauss & Co. (LEVI) and four other lesser-known stocks have debuted on (not over-the-counter) U.S. stock exchanges according to the All-in-One Screener, and each of them is doing better than Lyft since it began trading. They are: ShockWave Medical Inc. (SWAV), Genfit SA (GNFT), Futu Holdings Ltd. (FHL) and UP Fintech Holding Ltd. (TIGR).

ShockWave Medical Inc.

ShockWave Medica traded around $32.15 Tuesday, up 89.12% from its March 7 IPO price of $17 per share.

The Santa Clara, California-based company creates medical devices for the treatment of calcified cardiovascular disease. For 2018, it reported revenue of $12.26 million, increased from $1.72 million in 2017. It had a net loss of $41.1 million for 2018, compared to $30.61 million for 2017.

Genfit SA

Genfit SA ADS traded around $23.81 Tuesday, increased 17.18% from their $20.32 IPO price on March 27.

The France-based biopharmaceutical company discovers and develops drugs to treat liver and hepatobiliary diseases. For 2018, the company reported 69 million euros in revenue, up from 118 euros in revenue the prior year. Its net loss totaled 79.52 million euros, compared to 55.73 million euros.

Levi Strauss & Co.

Shares of Levi Strauss & Co. traded around $23 Tuesday, up 35.29% from their IPO price of $17 on March 21.

The apparel company has 50,000 stores in 110 countries. For 2018, the company reported $5.76 billion in revenue, a 14% increase from $4.90 billion in 2017. Net income totaled $285 million, flat from the prior year.

Futu Holdings Ltd.

Futu Holdings traded at $17.62 on Tuesday, up 46.83% from its $12 price at its IPO on March 8.

Futu Holdings is a Hong Kong-based online broker whose major investors include China's internet giant Tencent Holdings (TCEHY). For 2018, Futu Holdings reported 87.02 million Hong Kong dollars, versus 311.66 million Hong Kong dollars in 2017. Its net loss totaled 98.47 million Hong Kong dollars, compared to 8.10 million Hong Kong dollars.

UP Fintech Holding Ltd.

ADSs of UP Fintech Holding traded at $14.92 on Tuesday, up 86.5% from the $8 price at which they debuted on the Nasdaq on March 20.

The company is an online brokerage firm based in China, also known as Tiger Brokers. For 2018, the company reported $33.56 million in revenue, increased from $16.95 million in 2017. Its net loss totaled $44.29 million, versus $7.93 million the prior year.

See more IPOs at the All-in-One screener here.

This article first appeared on GuruFocus.