 Good day, File Investors. The hot topics on the street are Uber's IPO and the recent Lyft IPO. And I want to give you the most important thing you need to know when it comes to investing in such stocks. And that is private equity, the smart guys that have been investing in those companies through financing rounds, when they were building those companies, those smart guys are selling out and those people buying at the IPO, the pension funds, the ETFs that have to buy due to market capitalization and the investors that look at the growth promises, those are the suckers buying now. That's the most likely situation with this IPO. So the private equity is selling on the promise and they are selling at the best risk reward point for them to sell. If there would be better times ahead, they wouldn't do an IPO now, they would do it later. And that's the message, let's see. So Lyft is already 22% down since the IPO. So you see at the IPO, they managed to sell to these institutional investors that simply have so much money chasing any kind of assets that they have to be invested, they have to buy those and they are happy with them buying it. And later they might sell in the market when the lockup period passes. As Lyft made their IPO, similarly immediately Uber came in order to take advantage again of the hot market for such stocks. Who is selling, well, many series of funding rounds during the past. Lyft got a lot of money, billions of dollars and they want to cash in on their investments. Their only goal is to place the IPO at the most profitable moment possible. You see here seed money amount raised for Uber was 1.7 million in 2010. And now it is projected to be a 100 billion company on a 10 billion IPO, but also the last founding round in 2017, I don't know if it was the last, they raised 7.7 billion on a 50 billion valuation. So those guys that invested there might get out now with doubling their money or at least improving their balance sheets. The point is that the bigger the company is, the more money you can get on the promise of future growth. And future growth for Uber has been slowing down. So it's time probably for them, the growth will probably slow in the future. And it's time to do the IPO because they are big enough, they have to seal the promise so they can sell that to people. So the key here is private equity is selling to others that have to buy. For example, ETFs will chase these names to put them into their list because then it's easier to sell an ETF. And if we look at ETFs holding Snapchat, there are 47 ETFs holding Snapchat, many pension funds, many index funds that have included things like that. So there is plenty of money in the world to whom sell this kind of hot IPOs. However, the performance isn't good since the IPO, the stock really, really crashed. And I think that if you want such hot stocks in your portfolio, you should wait and there is a big likelihood that two out of three hot stocks will be 50% down within the next six months a year, especially when the lock up period expires. And then you might buy the same business much cheaper. However, there is always the risk that it explodes. But given the risk reward and the timing of the private equity sales, the chances are big that when the exuberant spaces, you see these kind of stocks much, much cheaper. Of course, the selling point is perhaps this is the next Amazon, but people are much smarter now than Jeff Bezos was in 1997. He simply needed the liquidity to grow the business, to scale the business and to make it what it is now. Uber is already big. They don't need IPO money to grow it. They can grow it on funding rounds. So it's really cashing in, not growth like it was the case in Amazon when they did the IPO. So thank you for watching. This is a value investing channel. So we'll look at the risk and reward, what's going on. I thought for those interested in these stocks, this could help plus maybe it will be a hot video. So all the income from the video ads go to charity. So we have, we are doing only good. And perhaps I'll help some of the investors who look at this from a value investing perspective and try to not get screwed by the very smart private equity guys. Thank you for watching. Looking forward to your comments and I'll see you in the next video.