Uber Sinks to New Record Low as IPO Share Lockup Expires

People are dumping Uber with over 79 million shares traded already. Compare that with an average of 10 million traded daily leading up to this.

Also weigh this against the fact that Uber had a relatively small float from its IPO compared to the shares coming free now. They had about 200 million shares available on their IPO and 4x that coming off restriction which is a huge ration.

They tried their best to boost their IPO at the expense of their employee's and the results are.... well not great.

I guess the good news is that with this lock up expiring 90% of the available Uber shares will now be available to trade so within the next week or so we'll find out what Uber's new price equilibrium will be.

Lots of open interest on the weekly $26 puts at the moment with nothing coming close on the call side, which indicates that not too many people expect a pop.

I guess the one silver lining is that Softbank probably won't be too active of a seller which should help employee's jumping ship.

Will be interesting to see the staff turnover at Uber in the next 6 months.

uber just had a big block trade one at a 4% discount, this is a pretty big discount from what a block trade would normally cross at which indicate that the buyer expects a larger drop to occur.

So looking at their cash position, they have about $12.5B in cash wich is good and total debt of $7.8 so lets call it $5B in cash on hand with free cash flow estimated at -$3.8B a year, so charitably 1.5 years of cash flow remain if the losses don't increase/decrease which isn't a very good assumption given that the losses have accelerated from 2017 and 2018

For something positive East is about 13% of revenue and "other" is 2.3% of revenue so they are starting to diversify their revenue, though at tremendous cost to their profitability.

Revenue is also pretty diversified by country with the US being only 53% of revenue which is a big accomplishment!!!

I am long on Uber: taxis are dead, it will not go anywhere. The only problem is that the board made a strategic mistake that felt good short term. They tried to retain users by pushing the founder out, and hiring a diversity CEO. This failed long term as any populist board move does. But they still have a chance to have their NeXT moment and bring Travis back.

i'd probably stay away from investing tbh

I wonder if lockup agreements will ever be made illegal.

I doubt it, since they’re primarily there to ensure the original investors get an ROI, but they sure seem to be an overall negative incentive for the general public / retail traders to purchase stock with lockup agreements, given the earliest they can buy is right when the IPO pops.

What's their cash on hand position, I believe I saw that there's 13B, after adding 8B in the IPO, that seems like a ton of cash on hand for a business that isn't showing any signs of turning of profit.

Could they not just without any further cash infusion continue to lose similar amounts for the next three years and be cash solvent. Does that then not give a big incentive to figure out how to become profitable in the near term?