Hi friends,
After much anticipation, Uber went public today and began trading on the New York Stock Exchange.
However, I will be staying away from the stock. Unfortunately, I see limited upside from the $80 billion valuation, and any other company would have been bankrupt by now, except that private equity and venture capital investors kept the thing afloat, and now are going to be looking to exit, which will create a lot of selling pressure on the stock.
The Uber business model is not close to profitable, there is plenty of competition, there are a myriad of legal issues with employment laws, and the company is just an app that somehow received an $80 billion valuation based on their gross revenues. They have lost $7 billion over the last two years, and there is no path to profitability, so the house of cards will eventually fall. They have been subsidizing people’s rides by using the capital of the private equity and venture capital firms, and now those firms will cash out by selling their now inflated shares to you. Uber will have to sell shares to raise capital so dilution is coming, as no lender in their right mind would loan Uber money.
I would love to hear differing opinions if they are out there if people are going to be investing in the company.
Take care,
Brian
Uber has worldwide service but in recent years they lost revenue. I don't have much idea about Uber except their riding service. Thanks for sharing the valuable information about Uber.
Posted using Partiko Android
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I think Lyft would be a better stock (similar concept, but they are actually profitable). In terms of business operations, Uber's still acting like a startup; expand until you can have enough of an economy of scale that you stop hemorrhaging money. If you can do it quickly enough and avoid taking on too much debt, it's a decent strategy. Uber has had around a decade to expand to that level and, uh... I'll pass on this stock.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
It's values like any tech company, profits done matter, it's all about sentiment and funding. I won t buy it but know many who will trade it purely off the charts.
I prefer to like the companies I buy, or at least understand how they can make money
Posted using Partiko Android
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I really have a good service uber to me.In our country, I use the service uber time.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Maybe Uber will be one of the first tech stocks in a coming domino of over valued tech stocks to fall? @brian.rrr
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I can tell you this much…. At least half of the people I interact with use Uber instead of driving.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Hi @brian.rrr!
Your post was upvoted by @steem-ua, new Steem dApp, using UserAuthority for algorithmic post curation!
Your UA account score is currently 4.161 which ranks you at #2942 across all Steem accounts.
Your rank has improved 73 places in the last three days (old rank 3015).
In our last Algorithmic Curation Round, consisting of 179 contributions, your post is ranked at #43.
Evaluation of your UA score:
Feel free to join our @steem-ua Discord server
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit