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Earlier quoted context omitted.
> if it closes below $45 it will be the first time since 2008 that the happened for a major IPO Sorry, first time that what happened?
edited the comment, $45 was the IPO price, meant it will be the fist time since 2008 that a major IPO closed below its IPO price on the first day of trading.
it's all a matter of perspective, I think an $80 billion market cap for a company that loses billions of dollars every year with no end in sight is not that disappointing at all for those who can sell today
Did I miss something? I thought Uber was still a long way from being profitable and had no plausible plan for how to become profitable.
Some notes from watching Uber open: - if it closes below $45(its IPO price) it will be the first time since 2008 that the happened for a major IPO - TD Ameritrade executed more orders in the first 10 minutes of trading than they did for the first 2.5 hours with Lyft. - Uber is 9% of all trading at TD Ameritrade, retail loves this stock, - market is down today, which isn't helping Uber but its probably not much of a f…
It's insane how heavy the retail investor scene is right now. Everyone and their grandma is an expert on tech stocks it seems.
Earlier quoted context omitted.
In the 1997, Amazon's proposition of "Online retailer" was also pretty far fetched. It wasn't obvious that their model was going to make them one of the largest retailers in the world.
I duno, buying stuff online seemed like the way of the future at the time IMO. When, how much and etc was just a matter of timing.
Earlier quoted context omitted.
This reads almost like a sports statistic with how arbitrary it feels.
It’s not arbitrary at all. IPOs are structured by investments banks to ‘pop’ on the first day. If the closing price is below the IPO that is generally regarded as a failure and may imply over-valuation.
Generally regarded by whom* exactly? The world is full of examples of IPOs that did badly on opening day/week but soared like mad afterwards. These generalizations and pretense of knowledge helps no one; especially considering that "over-valued" is not something that can be determined in a short period of time as value is relative to the context in which the asset presents itself.
* as a non-native English speaker, did I use whom correctly or should it be "who"?
Edit: thank you for the reply mr scarejunba!
This is unfortunate for many of the rank and file Uber employees but it’s good news for the stock market in general. It’s showing we’re not in a tech bubble and companies are still going to be valued based on how strong their business case is.
With the burn rate uber has, it'll be bankrupt in < 2 years. There are no other suckers to buy in after the public.
With such a high burn rate, what are they going to do? From everything I read they're not like Amazon where they can just "turn on" monetization unless they're going to hike up their prices.
So, why would anyone invest in this stock long term? What am I missing?
This is unfortunate for many of the rank and file Uber employees but it’s good news for the stock market in general. It’s showing we’re not in a tech bubble and companies are still going to be valued based on how strong their business case is.
The Uber employees now have access to the public markets to sell their stock options. Quite possibly, they had an option to sell at $45 a few weeks ago for the IPO.
Perhaps some employees "lost out" now that the price has dropped, but that's the breaks. Sometimes IPOs "pop", sometimes they "fall". But its strictly superior to have a market to sell your shares, rather than no market at all.