Earlier quoted context omitted.
It's insane how heavy the retail investor scene is right now. Everyone and their grandma is an expert on tech stocks it seems.
When your shoeshine person gives you trading tips..
Who still gets their shoes shined?
Uber opens at $42 per share
81–90 of 470 posts
Re: Uber opens at $42 per share
#82Unprofitable companies are the only ones that really benefit from IPOs.
An IPO is basically a way for the company to raise money, but tis time straight from the public. Usually when it gets harder and harder for them to attract private investors. The IPO listing basically guarantees that they won't take the public's billions and run.
Successful companies with perfect cash flows (think of Github, Valve, IKEA) always try to remain private. Because they have nothing to gain by raising more money. They can give their employees good bonuses and maintain control of the company.
This is by design. In Silicon Valley we are obsessed with them because they are the only meaningful exit for common employees (take the money and run mentality). The rest of the world doesn't care much because they see them for what they are.
Of course. Startup employees do not know they can sell their 'private' stock already, today. However, they need permissions to do so from the company's board (their answer will be NO. Here, saved you from asking. Or maybe they will offer to buy back the stock with shitty terms), and can only sell them to an accredited investor and not random people/public.
Many companies would be ran better if they remained private (think of Facebook, which now has investor pressure to increase the price, which results in careless decisions about data handling, privacy etc).
Re: Uber opens at $42 per share
#83Some 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…
For your point on TD Ameritrade, they're offering commission rebate first 5 days. Don't believe they offered that for Lyft. They're saying it's because they did not participate in Ubers IPO.
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Re: Uber opens at $42 per share
#84Earlier quoted context omitted.
Or "The Dow is down 312.9 points today due to geo-political tension in the Middle East", etc.
Reminds me of Aswath Damodaran´s china bit: "When in doubt, use China. It´s gonna make you look smart while saying absolutely nothing"
The absolute confidence with which people provide post-hoc explanations is great. Often the data is available for those explanations before the market behaviour and with $10k you could make $500k on SPY but everyone can explain after the fact but no one can predict.
Absolute cock and bull nonsense.
Re: Uber opens at $42 per share
#85Some 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.
It's nothing like the .com boom, CNBC was everywhere. Uber just happens to be really well known by everyone and is thus getting a lot of attention. Your hair dresser isn't likely talking about the Zoom IPO like they would have in 1999.
Re: Uber opens at $42 per share
#86Earlier quoted context omitted.
no resentment from my end best way to play the stock, bond and crypto markets is from the issuer side, and a lot of people don't seem to understand that and media seems to play the role of getting people to not understand and I think it is weird they only talk about the chances for the retail/secondary market perspective, dressed up as analysis
Are you arguing that the banks that work on the IPO shouldn't make any money off it?
why do you think I'm arguing anything? thats what you got out of that? be an issuer or a bank and sit it out if you aren't.
lets see, if I was arguing anything it would be that the media should talk more about the deal flow itself and pretty much ignore secondary market trading, showcasing the convenants of the deal in comparison to other deals. How about celebrating with the underwriters and profile the MD who worked on the deal - if we are putting large public deals on a pedestal - lets pop champagne with the people that actually made money and stop pretending like the secondary market price even matters, or maybe cut occasionally to a live stream to the underwriter's traders trying to hold up the stabilizing bid like it was a poker match if the market is dumping, and if they fold under too much selling pressure have silly music and the hosts on picture-in-picture laughing as if it was a Japanese game show
Re: Uber opens at $42 per share
#87Did I miss something? I thought Uber was still a long way from being profitable and had no plausible plan for how to become profitable.
Amazon didn't turned profit for first 5 years or so after IPO. If you go back 15 years down the history, you will find many articles/analysis doubting if they would ever become profitable. However no one doubted that online retail was the future and brick-and-mortar stores will increasingly become part of the history.
I see a lot of parallels here. No one doubts anymore that app-based cabs are the future and traditional taxis business is pretty much done now. So if you take that as foundation then there has to be one or two companies that would eventually dominate this business. With first mover advantage, Uber has good chance of being one of them.
Re: Uber opens at $42 per share
#88Some 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…
> Boo to the underwriters(Morgan Stanley), who seemed to misjudge the market's appetite
Who suffers if the price is quickly adjusted downward by the market? How is that different than it being released at that final market price from the get go? Naively I would think that setting it too high ensures maximum value is captured rather than going to early traders.
Re: Uber opens at $42 per share
#89This 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.
> This is unfortunate for many of the rank and file Uber employees 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 you…
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Re: Uber opens at $42 per share
#90Unprofitable companies are the only ones that really benefit from IPOs. An IPO is basically a way for the company to raise money, but tis time straight from the public. Usually when it gets harder and harder for them to attract private investors. The IPO listing basically guarantees that they won't take the public's billions and run. Successful companies with perfect cash flows (think of Github, Valve, IKEA) always t…
I'm not really sure about that.
Just like taking investor money at anytime it can be a way to get extra cash to continue to build the company quickly.
The IPO system is wonky and there are bad examples but I don't think your rule makes sense.