• Lack of transparency – Triton Research CEO Rett Wallace says Lyft’s IPO filing omits details that are necessary for investors and analysts to create a financial model for the company. He goes on to say, “It’s never good when companies decide to not be straightforward about the math of their business, and these guys told us almost nothing you need to build a model.”
• Management not aligned with shareholders – Management’s compensation structure is based on two triggers – a sale or IPO. So they get paid and everyone else gets stuck holding the bag?
• No current profits – And, to our knowledge, the company has given no indication how, if and when they expect to ever turn a profit.

All that said, it would not surprise us to see the stock in high demand when the IPO hits. Additionally, a negative return for the IPO buyers who hold on to their shares also seems an equally likely possibility.