legit/dumb question.
Math does not add for me on the '$82.4B valuation', they are selling 180 millon shares at $45 which is $8.1B what is the remaining 82.4b - 8.1b = 74.3b value come from????? it said:
"Uber had raised $28.5 billion as a private company from no less than 166 different backers, with its last valuation in the region of $75 billion. The $82.4 billion valuation that it finally settled on for the IPO (selling 180 million shares at $45/share)"
So it means that when they raised the 28.5b privately it went to 75b valuation????
please explain, thanks in advance...
Uber opens at $42 per share
161–170 of 470 posts
Re: Uber opens at $42 per share
#162Earlier quoted context omitted.
> Unprofitable I hear you, but... Meh, they say invest in companies who make products you use. I use the shit out of Uber and I don't plan on stopping even if the price goes up a bit. Now, I'm upper middle class, and I understand this isn't everyone's mindset, so I have no idea how the rest of the world feels. However, there are locatios, like my crappy hometown where I grew up not so fortunate circumstances, where h…
Who says to invest in companies who's products you use? That does not seem like great advice. You should invest in companies who are undervalued by the market in your opinion, not just because you like the product but because you think they have a good business around it.
I think Peter Lynch said that.
Re: Uber opens at $42 per share
#163Unprofitable 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…
Facebook voting rights are in the hands of their dear-leader and no amount of investor pressure has direct impact on the decisions made by the company.
> This is because of Facebook's dual-class share structure. Class B shares have 10 times the voting power of class A shares, and it just so happens that Zuckerberg owns more than 75% of class B stock. It means he has more than half of the voting power at Facebook.
https://www.businessinsider.com/facebook-investors-will-vote...
Re: Uber opens at $42 per share
#164Unprofitable 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…
This is incorrect. There are lots of cases where profitable companies want to IPO. Specifically the public markets are where you go when you need to raise money at significant levels. Nowadays this happens less often as their are bigger and bigger private investors (so you can raise billions in private markets). However there is still a point at which you may need to go public for fundraising. You are making a mistak…
> raise money at significant levels.
Define significant. I see softbank throwing billions at tech companies.
Re: Uber opens at $42 per share
#165Unprofitable 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…
Facebook voting rights are in the hands of their dear-leader and no amount of investor pressure has direct impact on the decisions made by the company. > This is because of Facebook's dual-class share structure. Class B shares have 10 times the voting power of class A shares, and it just so happens that Zuckerberg owns more than 75% of class B stock. It means he has more than half of the voting power at Facebook. htt…
Maybe that logic applies to other companies but Facebook is probably a bad example.
Re: Uber opens at $42 per share
#166Reminder that Facebook opened lower than this and was lower for years before they started growing. Granted, FB can, you know, make money.
> Granted, FB can, you know, make money
And there is the rub. Uber and lyft both loose money on every ride. Their whole strategy was to dominate sweeping markeshare by subsidizing rides, then cutting costs significantly with an autonomous network of driverless cars. AFAIK uber already failed in the second half, so there really is no plan right now with what to do with these massive expensive networks of drivers that both companies are now beholden to, other than shovel more money into the furnace and hope the lights stay on long enough for driverless cars to appear through a competitor who'd be willing to let uber use their tech. Even then I don't see margins being anything but razor thin.
I'd be polishing my resume if I worked at either of these companies.
Re: Uber opens at $42 per share
#167Earlier quoted context omitted.
Does Uber pay low salaries? This is the first I've heard of it.
The base salaries are comparable but the share comp, which is generally close to half of comp, was based on valuations that didn't pan out. Now that it's been marked to market it doesn't look great. Keep in mind that other tech companies have doubled their share price or better in the last four years.
Uh, okay, but what you actually said was people were "underpaid compared to industry salaries."
When you accept equity, you accept risk. I don't think that there's a terribly bright future for Uber, but the stock hasn't been a catastrophe so far, and all the other big stocks will have disappointing times too.
Re: Uber opens at $42 per share
#168Earlier 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.
Doesn't ride sharing seem like the way of the future in your opinion?
Re: Uber opens at $42 per share
#169legit/dumb question. Math does not add for me on the '$82.4B valuation', they are selling 180 millon shares at $45 which is $8.1B what is the remaining 82.4b - 8.1b = 74.3b value come from????? it said: "Uber had raised $28.5 billion as a private company from no less than 166 different backers, with its last valuation in the region of $75 billion. The $82.4 billion valuation that it finally settled on for the IPO (se…
The market cap (valuation) is the value of one share times the number of outstanding shares (those part of the IPO but also all the existing ones). $8B is the amount of capital raised during the IPO.
Re: Uber opens at $42 per share
#170Some 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…
Facebook was at ~$44 on the day it IPOed, and proceeded to fall over the next month to about $19. Today its at $187.
Facebook was also profitable and had about 10x the number of users compared to Uber pre IPO
https://www.forbes.com/sites/greatspeculations/2019/04/22/ub...