Apr 4, 2019

The war on Lyft has begun

Lyft team rings Nasdaq opening bell. Photo: Mario Tama/Getty Images

Investor blowback against Lyft has been fast and furious since the stock debuted last week.

Driving the news: Seaport Global analysts Michael Ward seared the company with a scathing "sell" recommendation on its third day of trading, notching a $42 target β€” $26 a share lower than its price at the time.

  • Short sellers have now joined the fray, with 12.4 million shares shorted at a value of $856 million, making the newly public company the 27th most shorted large U.S. stock. Short sellers have clamored to "rent" Lyft shares, paying an average of 101.40% borrow fee to bet against it. That's the highest fee of any domestic stock with more than $50 million of short interest, according to data from S3 Partners.
  • Carl Icahn sold his roughly 2.7% stake in the company, worth around $550 million based on the IPO price, before the company went public, the Wall Street Journal reported.

The bottom line: The stock opened well above its IPO price of $72 on the first day of trading, but has fallen by more than 20% from its first trade price.

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What to watch in tonight's debate

Bernie Sanders at a campaign rally in Colorado. Photo: Helen H. Richardson/MediaNews Group/The Denver Post via Getty Images

Bernie Sanders is now the clear front-runner for the Democratic presidential nomination, and his opponents are ready to try to knock him down at tonight's debate in Charleston, South Carolina β€” especially Michael Bloomberg, who was the punching bag at the Las Vegas debate.

Why it matters: This is the last debate before Super Tuesday, when Sanders is expected to win California and Texas and could secure an insurmountable lead for the Democratic nomination. That's a direct threat to the entire field, but especially to Bloomberg, who skipped the early states to focus on the March 3 contests.

Bob Iger to step down as CEO of Disney

Photo: Jeff Kravitz/FilmMagic

The Walt Disney Company said Tuesday that it had named longtime Disney executive Bob Chapek as CEO Bob Iger's successor, effectively immediately. Iger will remain executive chairman of the company through 2021.

Why it matters: Iger is credited with having successfully turned around Disney’s animation and studio businesses and with the strategic acquisition of Marvel, Pixar, Lucasfilm and 21st Century Fox. Most recently, he was the person behind Disney's successful launch of its Netflix rival Disney+.