Jim Cramer's Thoughts on Lyft's IPO, the Trade Talks and Tim Sloan's Retirement

Author:
Publish date:
Video Duration:
0

It's finally Friday...

The Trade Talks

There have been some positive headlines around the trade talks.

Treasury Secretary Steve Mnuchin said through his verified social media account Friday that talks with Chinese Vice Premier Liu He and the China trade team in Beijing were "constructive," adding Liu would travel to Washington next week to move the discussions forward.

Lyft's IPO

Ahead of Friday's trading debut on the Nasdaq Stock Market, 32.5 million shares of Real Money Stock of the Day Lyft (LYFT) - Get Report were priced at $72 each, raising more than $2.3 billion for the San Francisco-based company and valuing it at about $24.3 billion.

The price was at the top range of the estimates that Lyft filed with the Securities and Exchange Commission on Wednesday. The price range initially was set at $62 to $68 a share, but the estimate was lifted earlier this week to $70 to $72 because of greater-than-expected demand for the offering.

Lyft expanded its market share to 39% in 2018 from 22% in 2016. But the company has lost a total of $3 billion since it began operating in 2012, and there is still no guarantee the company will become profitable, a risk Lyft flagged in its own regulatory filings.

Related. Investors Are Eager to Ride With Lyft IPO on Friday

Tim Sloan's Retirement

Tim Sloan retired as CEO of scandal-plagued Wells Fargo (WFC) - Get Report .

Sloan's departure is an "opportunity for Wells Fargo to distance itself from its past business practices," said Fitch Ratings, the bond-rating firm, in a press statement.

Wells Fargo's board will now conduct an external search for candidates. General Counsel Allen Parker will serve as interim CEO until a replacement is found.

Related. Jim Cramer: Leaving Wells Fargo Is Tim Sloan's Best Move