"An investment in knowledge always pays the best interest."
                                                   - Benjamin Franklin, 1706-1790

Was Lyft's take-off sabotaged?

As a mother of three and Financial Advisor who wants to add to the ranks of the young and financially astute, I have to look for creative ways to engage conversation about finance.  Lyft's recent IPO (Initial Public Offering - answer to my recent quiz) gave me a topic with a name they know.  I gave them something to ponder and was surprised by their answers.

Lyft IPO

Lyft's new stock price took off past its opening price but a couple of days later it started to suddenly sink.  News came out that activist billionaire investor Carl Icahn had sold his 2.7% stake in shares just before the IPO*.  His investment company's former Managing Director had been sitting on the board of Lyft until last month and was the one who found the buyer for Carl Icahn's shares.  I asked my teenagers to share their thoughts and they left me in awe.

My eldest teen said it could mean either Carl Icahn found out something concerning and wanted to dump his shares of Lyft.  Or, he wants to make it cheaper to do his 'coup-style' investing by driving down the share price.  Either way, she said she would wait-and-see before buying Lyft's stock. 


April is Financial Literacy month.  Engage a young person in discussing finances and investing around topics that interest them.  You can be planting a seed that will grow into a financially astute adult.  Our world needs more of them!

*News article cited:  Reuters, 4/3/19 3:06PM ET, "Carl Icahn sold Lyft stake prior to IPO - WSJ"