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Lyft has yet to file for a public offering with the U.S. Securities and Exchange Commission (SEC), which means there is no Lyft stock ticker right now.
However, according to a March 1 TechCrunch report, Lyft is "casually" exploring IPO possibilities. While that is very vague, Lyft could be determining what kind of valuation it would receive before it would go public. It is also trying to determine the demand for Lyft stock.
And once Lyft files for an IPO, Lyft stock could be publicly traded very quickly.
For example, Blue Apron Holdings Inc. (NYSE: APRN) filed its IPO paperwork on June 1, 2017. Less than a month later, on June 28, retail investors were able to buy APRN stock.
And if Lyft files paperwork and brings shares to market as quickly as Blue Apron, we want Money Morning readers prepared.
That's because there's a dangerous perception involved with IPO investing that frequently causes retail investors to lose their hard-earned money…
How to Prepare for the Lyft IPO Date
The perception that investors can get rich quickly from IPOs is true. However, that only applies to insiders like hedge funds, big banks, and large institutions that make massive one-day profits when an IPO debuts.
You see, there's an IPO offering price that's only available to well-connected firms and institutions.
For example, Snap Inc. (NYSE: SNAP) offered insiders (including hedge funds) shares of Snap stock at $17 per share. When Snapchat stock was finally available to the public on March 2, retail investors had to pay $24 per share.
Must Read: The Most Anticipated IPOs of 2017
If retail investors try to play IPOs for short-term profits, there's an increased risk they will lose money trying to time the market.
IPO prices can be very volatile for the first few months. If investors bought Snap stock when it traded at an all-time high of $29.44 on March 3 and still hold those shares today, they would have now lost 39.91% of their original investment.
We don't want that to happen to Money Morning readers.
Lyft Co-Founder Breaks Silence on Uber
Through our free and exclusive Lyft Stock and IPO Guide, you'll learn how Lyft operates, its valuation, and whether you should buy Lyft stock. We'll also go into more detail on whether investing in Lyft will fit your long-term investing goals and the safest way to profit from IPOs for risk-averse investors.
You can find this exclusive guide, right here.
Up Next: Lyft isn't publicly traded yet. But there's a better path to profits. Find out how you can get stock picks and research that could put an extra $125,000 in your pocket delivered straight to your inbox for just pennies a day by clicking here…