Current Events > Uber's IPO promptly "lost" ~$600 million in value

(+) Yeah! (+)

https://gizmodo.com/congratulations-to-uber-the-worst-performing-ipo-in-us-1834681882?

Rideshare unicorn Uber doesnt do anything small. When it was in the game of raising money, it raised close to $25 billion. When it loses that moneyand it does every single quarterit loses it at astronomical burn rates. It finally debuted on the New York Stock Exchange today, in the middle of international trade uncertainty and following a massive, international strike by its own drivers, howd it do?

According to University of Florida professor Jay Ritter, Ubers 7.62 percent decline since hitting the NYSE makes it bigger than first day dollar losses of any prior IPO in the U.S.

In terms of percentage losses, Ubers dip doesnt even scratch the surface of the worst IPOs. But the staggering valuation of the company makes it, in raw scale, among the top 10 IPOs ever including companies outside the U.S., Ritter told Gizmodo in a phone interview. That single digit decline resulted in an estimated $617 million paper losses.

Consider also that Ubers debut valuation of $76.5 billion was a considerable drop from the between $90 billion and $120 billion the company had been worth in some analysts estimation just a month earlierone meant to stanch the forthcoming bleeding that had begun with competitor Lyfts bellyflop IPO. This defensive position did little to keep Uber or its investors from taking on water within a single day of trading.

According to one analyst, the company may be profitable by 2024, though its only real plan so far is to continue to screw workers and eventually replace them with unproven technology. As former CEO Travis Kalanick said in 2014, the reason that Uber could be expensive is youre not just paying for the car, youre paying for the other dude in the car whos driving.

Presently, investors are probably realizing that what theyre paying for is an unsustainable company so huge that its main justification for existing is sunk cost.

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This sucks. Uber is going to be as expensive as taxis soon.
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Well, this is proof we need socialism. Also why is "lost" in quotes TC?
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This was pretty much expected tbh. On the flip side, BYND IPO was an amazing short term investment.
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my buddy made a couple thousand shorting Lyft's IPO, I think he's doing Uber next lol. easy money
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friendbuddypal posted...

Well, this is proof we need socialism. Also why is "lost" in quotes TC?

Because that value was never real in the first place; it only existed on paper
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Antifar posted...

friendbuddypal posted...

Well, this is proof we need socialism. Also why is "lost" in quotes TC?

Because that value was never real in the first place; it only existed on paper

That's not how value works.
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Antifar posted...

friendbuddypal posted...

Well, this is proof we need socialism. Also why is "lost" in quotes TC?

Because that value was never real in the first place; it only existed on paper

Yeah stock valuations are kinda bullshit. A company can have no profits and lose money every year, and can be valued at billions by the market.
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Squall28 posted...

Antifar posted...

friendbuddypal posted...

Well, this is proof we need socialism. Also why is "lost" in quotes TC?

Because that value was never real in the first place; it only existed on paper

Yeah stock valuations are kinda bullshit. A company can have no profits and lose money every year, and can be valued at billions by the market.

Because investors have a certain amount of confidence in their future cash flows and the assets they're currently holding. Stock prices aren't just made up by monkeys on typewriters, a lot of research goes into them.
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Uber is dog shit
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friendbuddypal posted...

Stock prices aren't just made up by monkeys on typewriters, a lot of research goes into them.

Unless its NFLX lol
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Smashingpmkns posted...

friendbuddypal posted...

Stock prices aren't just made up by monkeys on typewriters, a lot of research goes into them.

Unless its NFLX lol

Yeah I think that's a case of old people just going "it's popular with kids, it has to be valuable!"
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My friend bought 70 shares at open today.
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And this is why you never buy an IPO.
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Holy fuck lol
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Nice I'm definitely buying in
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Same thing happened to Lyft when they first went on the market. Give it time. One or both will rise just like Amazon.
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BilalPowell posted...

Same thing happened to Lyft when they first went on the market. Give it time. One or both will rise just like Amazon.

When autonomous cars become the norm I see Uber and Lyft making bank.

Problem is that's probably at least 5 years away.
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littlebro07 posted...

My friend bought 70 shares at open today.

Probably a bad move tbh but who knows.
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wtf, I had no idea Uber was worth that much
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Smashingpmkns posted...

littlebro07 posted...

My friend bought 70 shares at open today.

Probably a bad move tbh but who knows.

I bought 50 shares at $42.00. I don't think the stock is going to do what Lyft did and just free fall because Uber went with a lower opening price out of the gate. I think if there wasn't all the B.S. tariff crap going on it would have had a better day and I am expecting it to have a decent next week. The stock did shoot up early on and then there was a sell off before close to erase a lot of the gains it made where people were just making a few bucks today. I don't plan to hold onto it long term and was just hoping it would get up to the high 50s or low 60s and I would sell and move on. I still think that will happen in the short term. IMO, Uber has more value than Lyft because of Uber Eats and its investment in self driving cars.

But...I also don't really know what I'm doing and am more of a gambler in stocks so who knows really.
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Smashingpmkns posted...

littlebro07 posted...

My friend bought 70 shares at open today.

Probably a bad move tbh but who knows.

It's a stock to hold for the long haul IMO
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littlebro07 posted...

Smashingpmkns posted...

littlebro07 posted...

My friend bought 70 shares at open today.

Probably a bad move tbh but who knows.

It's a stock to hold for the long haul IMO

I do not agree tbh. Much better stuff to invest in. But again, who knows? I'll say I made a lot more than your friend invested in by just shorting BYND, which was earlier this week.
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