Spark Global Limited reports:
You’ve probably heard stock traders talk about “LUPA” stocks. But what are they?
LUPA is a relatively new acronym for four well-known tech companies that have gone public for the first time in recent years:
The first letter of each stock is LUPA. These stocks are also known as “Paul” stocks.
In this article, we will first look at The LUPA stock as a whole and then delve into each stock.
LUPA’s shares are often lumped together for a number of reasons. First, they are all technology companies, which means they often operate in the same market segments.
Lyft and Uber, for example, both run online ride-hailing services, Pinterest runs an image-based social media network and Airbnb is an online home-sharing giant.
Second, before they went public, these companies were “unicorns,” meaning private equity investors valued each company at more than $1 billion. Finally, they are all recent public companies with large losses and rapid growth in the public markets.
Below we take an in-depth look at each of LUPA’s stocks to help you understand their business model and growth potential.
Lyft began trading on NASDAQ on March 29, 2019, and became the first ride-hailing company to go public in a highly anticipated listing valued at about $18 billion.
Lyft and rival Uber have been battling for dominance in the ride-hailing industry for years.
However, Lyft is only available in Canada and the United States, unlike Uber, which spans the globe. Lyft has about 35 per cent market share in the US.
But Lyft, like Uber, is very unprofitable. The two companies offer basically the same basic services, so the competition comes down to market share, driver pay and other factors that can help them achieve positive cash flow.
Lyft’s shares soared 8.7% on their first day of trading, opening at $87.24, well above its initial public offering price of $72 a share. But the stock has taken a sizable hit since completing the IPO. The company is currently trading at $57.06 per share, giving it a market capitalization of about $18.79 billion.
Super (NYSE: Breast)
Uber went public in May 2019, 10 years after The company was founded by Garrett Camp and Travis Kalanick. Lyft’s rivals priced its IPO at $45 a share, valuing it at about $82.4 billion. The company raised $8.1 billion in its IPO.
But the company’s stock has fallen since its debut. At the time of writing, Uber shares were currently trading at $49.80.
Investors have been concerned about the company’s business model and workplace culture. Uber has been hit by a series of scandals, including sexual harassment, embarrassing leaks about executive behavior and suspected spying programs. Kalanick was ousted as CEO of the ride-hailing giant in 2017 after a shareholder revolt.
The company also faces stiff competition in ridesharing and food delivery, and the price war with Lyft and other rivals is expected to continue in each market.
While Uber CEO Dara Khosrowshahi called the first quarter of 2021 “the best quarter ever,” with all-time high gross bookings, the company still recorded a net loss of $108 million.
However, that was a huge improvement over the $968 million net loss the company recorded in the fourth quarter of 2020.
Pinterest (NYSE: Pin)
Pinterest is a social media site that allows users to discover new interests through visual sharing and by “pinning” videos or images to their own or others’ boards and viewing what users have nailed down.
People use it for all kinds of inspiration, like interior design, cooking, clothing and travel. Simply put, it is a visual platform, optimized to inspire users with new ideas and an understanding of one’s taste.
Pinterest shares began trading in April 2019, valuing the company at $10 billion.
Pinterest has been able to put together a stable business since it was founded in 2010. As of January 2021, the company ranks 14th in the world in terms of global active users. It ranks below social networks like Facebook, Snapchat, Instagram and TikTok, but above Twitter.
Pinterest added more than 100 million monthly active users in 2020, its biggest increase ever. While the company won’t pose much of a threat to social media giants Google and Facebook, some analysts believe it still has room to grow.
Its core concept is to inspire users through products, ideas and so on, and create value for shareholders and users. Over the past year, the company has improved its average revenue per user (ARPU) significantly across all markets, and user growth is reasonable.