Apr 16, 2019

Lyft's cry to early investors: "Remember Facebook!"

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Data: Investing.com; Chart: Harry Stevens/Axios

Lyft has fallen spectacularly since its impressive first day of trading, and with most early investors' shares still in lock-up, it may be poised for more losses.

What's happening: The company has disappointed investors and has been seized upon by short sellers, who are making a killing. Short interest had risen to $944 million as of Friday, with 15.5 million shares shorted, totaling nearly 65% of the float, or the shares available for purchase, according to data from S3 Partners.

Yes, but: Lyft is hoping this is just a rough start and can point to the early trials of Facebook to reassure investors that all is not lost. Facebook's stock lost half its value before the end of its 90-day "lock-up" period — a holding time typically 90–180 days during which certain shareholders are barred from selling their stock.

  • When the period ended, Facebook shares fell further, dropping to $19.05 a share. Early investor Peter Thiel cashed out the majority of his investment around that time, and Accel Partners, another of Facebook's early backers, reportedly dumped 50 million shares on the market.
  • Trading volume in the stock after its lock-up ended was unusually high, with 157 million shares trading hands, versus a 30-day average of 31 million, per the New York Times.

What Lyft will be telling investors: The shares Thiel sold for around $400 million would be worth closer to $4 billion today with Facebook trading near $180 a share.

Go deeper: Lyft's rocky IPO

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Coronavirus updates: World case count tops 600,000, Spain sees its deadliest day of outbreak

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens and confirmed plus presumptive cases from the CDC

Spain reported a record 832 coronavirus deaths in 24 hours — just one day after Italy reported nearly 1,000 deaths.

The big picture: The U.S. now leads the world in confirmed coronavirus cases, as the number of global cases nears 615,519. Governments around the world are trying to curb the medical and financial fallout of COVID-19, as infections surge across Europe and the U.S.

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 9 a.m. ET: 614,884 — Total deaths: 28,687 — Total recoveries: 135,671.
  2. U.S.: Leads the world in cases. Total confirmed cases as of 9 a.m. ET: 104,837 — Total deaths: 1,711 — Total recoveries: 894.
  3. Federal government latest: President Trump signed the $2 trillion coronavirus stimulus bill to provide businesses and U.S. workers economic relief.
  4. State updates: Alaska is latest state to issue stay-at-home order — New York is trying to nearly triple its hospital capacity in less than a month.
  5. World updates: Italy reported 969 coronavirus deaths on Friday, the country's deadliest day.
  6. Business latest: President Trump authorized the use of the Defense Production Act to direct General Motors to build ventilators for those affected by COVID-19. White House trade adviser Peter Navarro has been appointed to enforce the act.
  7. What should I do? Answers about the virus from Axios expertsWhat to know about social distancing.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it.

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Illustration: Sarah Grillo/Axios

News about the coronavirus is so big and coming so fast that it's hard to remember what happened just last week, let alone last month.

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