Why Lyft Will Survive Coronavirus
Lyft's (NASDAQ: LYFT) stock price has been decimated -- down 50% since its February high of $54 per share to just $26 per share. Demand for Lyft's popular ride hailing service is almost certainly down enormously right now. But Lyft is going to survive this period and recover. Here's why.
Lyft had its initial public offering (IPO) in March of last year when it sold shares to the public at a whopping $72 per share. That raised $2.5 billion of cash for the company and is the major reason why it now has almost $2.9 billion of cash on the balance sheet today. In addition, Lyft has no debt. That's a very strong financial position.
The company is clearly seeing demand for its ride hailing service plummet as a result of coronavirus outbreak, but that $2.9 billion cash cushion gives the company a substantial amount of flexibility to absorb the cash burn it is seeing right now.
Source Fool.com
