On-demand ride-sharing provider Lyft Inc. (LYFT) reported the firm's second-quarter financial results on Wednesday evening. Yes, the firm lost money. This fact of life only begins to scratch the surface of a very interesting story. Let us begin.
First, New York City votes to extend the limit on the number of permitted Lyft and Uber (UBER) drivers operating within the city for an additional year. That, it seems, is not a negative, but certainly not a positive.
On top of that, the Lyft filed with the Securities and Exchange Commission to terminate the firm's lock-up period more than a month early, due to coming blackout periods as well as agreements with underwriters from the initial public offering.
This frees up a potential 257.6 million shares possibly for insider sales as soon as Aug. 19 -- instead of on Sept. 24. Again, possibly a negative. Every newly public firm goes through lock-up expiration. Nobody relishes it. Certainly nobody rushes to the date. Again, a likely negative ... unless ... the firm is feeling quite confident.
Note to readers: This firm is indeed feeling quite confident.