The delayed IPO of food-delivery startup Postmates is a clear result of catastrophic trading in several tech unicorns that have gone public in 2019 such as Uber Technologies, Inc. and Lyft, Inc., IPO Edge Editor-in-Chief John Jannarone told Cheddar TV on the floor of the New York Stock Exchange Thursday. Lyft, for instance, once traded at a healthy sales multiple but has fallen to an enterprise valuation of just 1.7 times 2020 consensus sales while Uber trades at 3.1 times, according to Sentieo.
Still, Jannarone argued that the selloff in some shares may create a buying opportunity. SmileDirectClub, Inc., for instance, has declined in value so sharply that investors can own it for roughly 3 times 2023 Ebitda, according to IPO Edge calculations. On Thursday, SmileDirectClub announced a private placement of $380 million, led by legendary venture capital firm Kleiner Perkins.