Would you invest in Uber?




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ORIGINAL POST

Posted by Ed 2 mths ago
https://pbs.twimg.com/media/D6IgGePXoAEE5fn.jpg


https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/2019.05.09uberthree.png


https://cms.qz.com/wp-content/uploads/2019/05/uber-driver-strike-may-8-e1557429577367.jpg


Don’t expect the global Uber strike to change anything for drivers

https://qz.com/1615802/the-global-uber-strike-wont-change-anything-for-drivers/

COMMENTS

Ed 2 mths ago
Map: All the places where Uber is partially or fully banned

https://qz.com/1084981/map-all-the-places-where-uber-is-partially-or-fully-banned/

Ed 2 mths ago
"This Is A Trainwreck" - Uber Opens Below IPO Price

Having IPO'd at $45 (raising around $74 billion), Uber's is the biggest IPO since Alibaba.

But this morning, faced with an ugly market background, Uber's indicative range has collapsed from around $48 to finally open at $42...popped, then traded back below the open...

Morgan Stanley has to stabilize UBER IPO at $45 per the agreement; it is facing tens of millions in losses.

"How did the bankers get this so wrong" exclaimed one CNBC anchor...

Cramer warned: "They have to get it to 46 if UBER does not want to be the end of the unicorn era"

https://www.zerohedge.com/news/2019-05-10/trainwreck-uber-opens-below-ipo-price



Next week should be .... interesting....

Ed 2 mths ago
Uber admits it may never make money ahead of IPO


https://youtu.be/WIGL4F-FyWA

Ed 2 mths ago
Saudi Arabia's Wealth Fund Is Underwater On Uber's IPO

Buy low and sell high, traditional investing wisdom dictates.

So far, that lesson hasn’t worked out for one major Uber investor: Saudi Arabia’s sovereign wealth fund. That fund, under a new directive to diversify the company’s financials outside of oil, bought its shares of the ride-sharing giant when they were priced at $48.77 apiece—above Uber’s IPO price of $45, per Securities and Exchange filings.


The Public Investment Fund of Saudi Arabia (PIF) made its first direct investment in early 2018, not long after current CEO Dara Khosrowrshahi took the helm of the crisis-ridden giant, injecting $3.5 billion in the company in exchange for shares and options. Assuming all options will be exercised in the future, that stake is now worth about $3.3 billion, representing a paper loss of $201.5 million.


http://fortune.com/2019/05/10/saudi-arabia-uber-softbank-ipo-stock-price-date/

Ed 2 mths ago
Uber, which had sold its China operations and is no longer significantly tangled up in the US-China trade war, is morphing from the biggest, most hyped tech IPO in recent memory into the most colossal flop in recent memory.

Shares plunged nearly 11% today to $37.10 a share. This left shares down 17.6% from its IPO price of $45, at which Uber had extracted another $8.1 billion from gullible investors.


https://wolfstreet.com/2019/05/13/nasdaq-drops-6-3-in-6-days-as-uber-lyft-ipos-turn-into-colossal-flops-sp-500-chart-not-pretty/

Ed 2 mths ago
Prior investors are even deeper in the hole. Uber extracted nearly $7 billion from institutional investors between December 2015 and February 2017 by selling them 140 million shares at $48.77 a share, over half of them to Saudi Arabia’s Public Investment Fund, and these folks are now down nearly 24%. Shares of Softbank, which also holds a large stake in Uber, fell 5.5% today.


Lyft dropped another 5.7% today, to a new closing low of $48.15. Lyft had been the trailblazer this year for the hottest most hyped IPOs.

Ed 2 mths ago
Uber's Colossal IPO Flop May Be the Worst Ever on Wall Street

Despite pitching Wall Street on the promise of Amazon-like returns, investors appear to have discovered the many red flags in Uber’s prospectus. On Friday, the ride-hailing company closed its first day of trading below its I.P.O. price, representing billions of dollars in lost value. Uber continued to slide Monday, with shares sinking close to eight percent in the morning, or 15 percent below the stock’s initial price.

It just might be the biggest I.P.O. bust in history, CNN notes. No other company has been as well known, raised as much money, shown as much promise, and then performed so poorly out of the gate. Uber, which was once valued by private investors at as much as $120 billion, is currently worth about half that.

https://www.vanityfair.com/news/2019/05/ubers-colossal-ipo-flop-may-be-worst-ever-on-wall-street?verso=true

Ed 2 mths ago
Today, Uber closed its second day of trading down more than 18.8% from its IPO price at $37.25 per share, with a market cap of $62.2 billion. Uber, which was previously valued at $72 billion by venture capitalists on the private market, priced its stock at $45 a share for an $82.4 billion valuation last week.

Ed 2 mths ago
As I write the Uber IPO is down 20%. I was asked yesterday for my opinion – if I had one, on where it should trade. I don’t have a clue.


I don’t know how to value such a company – I’m still stuck in the past where I expect companies to make money and pay me dividends were the ones to own. I expect them to dominate their markets through product, service and innovation.


I don’t believe in monopolies as good or long lasted. In short, I am some sort of investment dinosaur in this modern age.


I am a fool because I don’t see the fantastic value in Uber – which can lose $3 dollars a share every quarter, fail to increase its market share, suffer and acknowledge increasing competitive pressure, and still be a must-own stock. At one point recently – pre-IPO – the company was apparently worth $120 bln based on where the early funding rounds priced. Now it’s worth slightly more than half that.

Unlucky timing on the IPO – straight into the Risk-Off China Selloff.. or was it? Have we reached the “tide-goes-out” moment? If we have, then Uber (and Lyft, which is being massively short-squeezed), could be the least of our worries.

For the avoidance of doubt I know absolutely nothing about Uber. I thought it was taxi app… but that apparently massively underestimates the intrinsic value of its “ride-hailing” app technology and associated lines such as Uber-Eats and driverless cars which will mean they don’t have to pay divers.


That and the fact they don’t own any taxis and don’t employ any drivers anyway. The fact I have 6 “taxi apps” on my phone – and none of them is Uber - is apparently irrelevant in terms of Uber’s ability to monetize their tech. (How and when I ask??)


Since I know nothing, lets quote others:


https://www.zerohedge.com/news/2019-05-14/blain-ubers-warning-emperors-new-clothes-moment-upon-us

Ed 2 mths ago
Understanding Why Uber Loses Money


https://news.crunchbase.com/news/understanding-uber-loses-money/

Ed 2 mths ago
Investors explore who's to blame for the incorrect Uber IPO pricing

Uber's stock is down more than 15 percent since it opened for trading on Friday, leaving investors asking who is to blame.

https://www.cnbc.com/video/2019/05/14/investors-explore-whos-to-blame-for-the-incorrect-uber-ipo-pricing.html




I am thinking .... perhaps they should be asking why they bought the IPO of a company that loses billions every year (for many years) and has no clear path to profitability ....

Ed 2 mths ago
Uber’s Flop IPO: More Stock Downside Could Be in Store as Competition Heats Up


It wasn't surprising to see Uber's (NYSE:UBER) stock slip after the ridesharing giant made its much-awaited debut as a publicly traded company last week.


There were indications that Uber's IPO was going to be an underwhelming one despite the company's move to price its shares conservatively, and the predictions didn't disappoint. On its first day of trading, the stock fell more than 7.6% from its IPO price.

What's more, Uber stock slipped another 10.7% on its second day of trading. As of this writing, the company's market cap is around $62 billion.

Ballooning losses, higher expenses, and a slowing pace of growth have taken their toll. And don't be surprised to see Uber stock losing more value as it faces tough challenges.



The fact that Uber's stock fell and its valuation is now below the lower end of the company's expected range seems justified. Uber has clearly told investors not to expect a profit as it spends money to grow the business and keep the competition at bay.






Don't miss these ominous signs


Investment bankers were bandying about a $120 billion valuation for Uber last year. But Uber priced its offering in a range of $44 to $50 per share, expecting a valuation in the $80.5 billion to $91.5 billion range.



The fact that Uber's stock fell and its valuation is now below the lower end of the company's expected range seems justified. Uber has clearly told investors not to expect a profit as it spends money to grow the business and keep the competition at bay.


According to an updated S-1 filing, Uber estimates its 2019 first-quarter revenue increased around 19% year over year to a range of $3 billion to $3.1 billion. It expects to report a loss of around $1 billion during the quarter, while the operating loss for all of 2018 was $3 billion.



So what has caused Uber to lose its momentum?


The first thing that springs to my mind is that the competition is taking away Uber's business.

E-commerce research company Edison Trends has found out that Uber's market share in the ridesharing space has dropped 4 percentage points to 64% over the past year.


That doesn't come as a big surprise, because the growth in Uber's monthly active customers has slowed down in recent quarters.


While Uber's "monthly active platform consumers" increased 35% annually in the final quarter of 2018, rival Lyft saw a 46% annual increase in its active riders last quarter. Uber defines monthly active platform consumers as "the number of unique consumers who completed a Ridesharing or New Mobility [includes bikes and scooters] ride or received an Uber Eats meal on our platform at least once in a given month, averaged over each month in the quarter."


Now that its growth has taken a hit and the competition seems to be eating into its market share, Uber's market cap could fall further, as bearish sentiment can send the stock lower.


https://www.fool.com/investing/2019/05/15/ubers-flop-ipo-more-stock-downside-could-be-in-sto.aspx

Ed 2 mths ago
http://cdn.toddwschneider.com/taxi/update2017/ridehail_market_share.png

Ed 2 mths ago
The Banks That Ran Uber's IPO Feared This Would Happen


Matt Levine, among others, has been writing about the extraordinary measures that the investment banks running Uber’s initial public offering took, in vain, to stop the stock from tumbling in its first few days on the stock market.

First, there was a not-extraordinary measure: the greenshoe, typical in IPOs, where for every 100 shares the going-public company sells to the underwriting banks running the IPO, the banks turn around and sell 115 shares to investors.


Because the banks sell more shares than they buy, they end up with a short position in the company they’ve just taken public, which is a little weird.


But company insiders give the banks an option to buy the additional 15 shares later, at a fixed price slightly below the IPO price, which protects the underwriting banks from losing money on their short position, which helps avoid a perverse incentive for the banks to be afraid that their client’s stock will go up.


http://nymag.com/intelligencer/2019/05/the-banks-that-ran-ubers-ipo-feared-this-would-happen.html

Ed 60 days ago
Uber shut down a party at a satellite California office and at least one employee resigned after some celebrations marking its initial public offering on May 10 got out of hand, according to current and former employees, a setback for the company's efforts to change its corporate culture.

Those people said that the celebrations, which kicked off with company-provided mimosas on the day of one of the largest public offerings in recent history, made them feel uncomfortable and seemed immature - especially as Uber's stock price plunged, erasing billions of dollars of value.

It also reminded some of a more toxic company culture Uber has been striving to erase, causing something of a hangover.

"Old Uber hid themselves until today apparently," said one employee, who spoke on the condition of anonymity because that person was not authorised to speak publicly.


Despite warnings from the company in its invitation to "Keep it Classy," one executive assistant handed in her resignation after a verbal outburst and dispute with colleagues during the celebrations, according to current and former employees with direct knowledge of the incident.


A party at one California satellite office was shut down, according to one of the people, who spoke on the condition of anonymity because of the sensitivity of the situation.


https://www.stuff.co.nz/business/world/112846905/uber-rang-in-its-ipo-with-champagne-and-then-the-hangover-began



Funny how one can behave like a character from Animal House... abuse women in the workplace.... operate a company that loses billion after billion after billion ...

And still achieve extreme wealth.... (and believe you are a genius)....

Ed 51 days ago
Uber Reports Record Cash Burn, $1 Billion Loss In First Quarter As Public Company

In its highly anticipated first quarterly report as a public company, Uber Technologies reported a $1.034 billion loss from operations, more than double the $478 million loss a year ago despite a 20% rise in revenue, posting results that slightly beat forecasts, yet underscoring the challenges the ride-hailing service faces to become profitable one day.

Uber's revenue of $3.1 billion, up from $2.58 billion a year ago, was in line with high end of the range Uber forecast for the quarter, while the loss of $1.0 billion compared with the company's forecast of $1.0 billion to $1.11 billion.


https://www.zerohedge.com/news/2019-05-30/uber-reports-record-cash-burn-1-billion-loss-first-quarter-public-company


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