Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

A Lyft driver. Photo: Frederic J. Brown/AFP/Getty Images

Not only is Lyft not profitable now and losing $911 million a year, the company has said it's not sure how it ever will be profitable. But investors don't care.

Driving the news: Lyft is expected to price on Thursday and go public Friday, with estimates for the company's market cap having risen to $25 billion. That's $10 billion higher than its most recent private valuation of $15.1 billion, which was double its value as recently as April 2017 of $7.5 billion.

What's happening: Lyft's IPO is perfectly timed at the intersection of 3 concurrent market themes that are driving investor FOMO.

  • Private companies are staying private for longer and growing larger than they have before. Despite a recent uptick, fewer companies than ever are going public.
  • Private equity managers are holding more dry powder, or money on the sidelines, than ever before. That's a function of more money flowing into private equity as its returns have beaten public markets' and a lack of new businesses deemed worthy of that capital.
  • The stock market is rising again, headlined by big technology names, toward all-time highs with rich valuations that's even got Warren Buffett saying he can't find anything to buy.

The intrigue: This is a wide-ranging phenomenon that's even demonstrated itself in Tajikistan government bonds.

  • Despite being a country most investors couldn't find on a map, Tajikistan's $500 million bond offering in 2017 received $4 billion worth of bids, or 8 times more than it offered. That was with a credit rating well below investment grade and absolutely no track record.
  • As I wrote not long after the Tajikistan deal, emerging market debt was so in demand from buyers in search of high yields and whatever was hot at the moment that dedicated EM investors literally weren't able to get bonds they wanted.
  • "It's frustrating for me as an investor," Josephine Shea, portfolio manager at Standish Mellon Asset Management said at the time. "There seems to be quite a bit of indiscriminate buying without looking into underlying fundamentals."

The theme continued this year as Uzbekistan, another former Soviet country that has never before sold bonds to the international market, produced a $1 billion bond offering at a 4.75% coupon (well below average) that received $5.5 billion of bids.

The bottom line: Whether it makes money or not, Lyft is a hot name that's part of a successful sector. It has been just the latest beneficiary of investor FOMO. That's driving Lyft's valuation to potentially double what it was just 9 months ago and more than triple what it was 2 years ago.

  • Barring a recession or some cataclysmic error or scandal, the rest of the LUPAS (Lyft, Uber, Pinterest, Airbnb and Slack) will probably see similar valuation bulge.

Go deeper: Lyft files first for IPO in litmus test for the industry

Go deeper

Federal judge blocks vaccine mandate for NYC teachers

Students are dismissed from the first day of school at PS 133 in Brooklyn on Sept. 13. Photo: Michael Nagle/Xinhua via Getty Images

A federal appeals court judge on Friday temporarily blocked New York City schools from enforcing a vaccine mandate for school employees, days before it was set to take effect, AP reports.

Driving the news: The vaccine mandate was set to begin on Monday, prompting concerns over staffing shortages in schools across the nation's largest school system.

CCP releases two jailed Canadians after Huawei CFO deal with DOJ

Photo: Sheldon Cooper/SOPA Images/LightRocket via Getty Images

Two Canadians imprisoned by the Chinese government for over 1,000 days have been released and are expected to arrive in Canada on Saturday, Prime Minister Justin Trudeau said Friday.

Why it matters: Their release comes hours after Huawei Technologies CFO Meng Wanzhou reached a deal with the U.S. Department of Justice that resolves the criminal charges against her and could pave the way for her to return to China.

Updated 22 hours ago - Politics & Policy

Arizona GOP's private recount of 2020 election confirms Biden's win

Contractors working on behalf of the GOP examine and recount 2020 ballots at Arizona Veterans Memorial Coliseum in Phoenix in May. Photo: Courtney Pedroza/Getty Images

In an odd coda to the 2020 election, private contractors conducting a GOP-commissioned recount in Arizona confirmed President Biden’s win in Maricopa County.

Why it matters: The unofficial, party-driven recount has been heavily covered on cable news as part of former President Trump's continued effort to sow doubt about the election result.