IPOs can tell us something about the market, particularly now when there are more than 300 companies preparing an IPO. Few of these companies have made money, some have never shown a profit. And the losses are not chicken feed. Lyft “posted losses of $911 million in 2018, a statistic that will make it the biggest loser amongst U.S. startups to have gone public," according to data collected by The Wall Street Journal. Uber, a Lyft competitor, lost $1.8 billion in 2018, down from a loss of $2.2 billion the year before, and it could take some time before the ride-sharing company closes the gap between its sales and profits.”
The percentage of IPOs with negative earnings in 2018 was the highest percentage since the dot.com bust of 2000, a year in which 81 percent of all IPOs had negative earnings – two percent less than last year.
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