Uber opens at $42 per share

Post by vikramkr » Fri, May 10, 2019, 7:31 PM UTC

mojomark wrote: post #128

throwaway66666 wrote: post #82

Unprofitable 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…

> 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…

Post by marnett » Fri, May 10, 2019, 7:32 PM UTC

intuitionist wrote: post #142

khazhou wrote: post #55

According to this article, stock was valued internally at $49/share in 2016 , so anyone joining in the last three years will not have enjoyed any sort of rocket-ship growth. https://news.yahoo.com/uber-employees-may-not-partying-15171...

If you’re joining a $60 billion company with thousands of employees expecting rocket-ship growth, that’s kind of on you, I think. You wouldn’t expect that from a public company; why would you from a similarly sized company that just happens to be pre-IPO?

Post by asdff » Fri, May 10, 2019, 7:33 PM UTC

atemerev wrote: post #38

ufmace wrote: post #11

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.

These days, being profitable is considered harmful. More profits = more taxes. Getting virtual “profits” into stock appreciation and structuring revenues to pay nearly zero tax is the name of the game today, and only big corporations can afford it. It is small and medium businesses that pick the bill.

Post by computerex » Fri, May 10, 2019, 7:33 PM UTC

criddell wrote: post #93

bfrog wrote: post #36

Earlier quoted context omitted.

With the burn rate uber has, it'll be bankrupt in < 2 years. There are no other suckers to buy in after the public.

I've never understood why so many people were/are so bullish on Uber. I understand that ride hailing is a big deal, but it doesn't feel like it's that hard to launch a new ride hailing company. I'm basing that opinion on what I've seen in my city. When Uber and Lyft left Austin, there were lots of alternatives that had existed or popped up to fill the space. Aside from brand recognition, what does Uber have that the…

Post by [deleted] » Fri, May 10, 2019, 7:37 PM UTC

BoiledCabbage wrote: post #195

resters wrote: post #97

Earlier quoted context omitted.

The investment bank sells a lot of shares to its own preferred clients. If the price then drops (because the initial offering price was too high) those preferred clients lose money. So the bank has every incentive to price it low, and usually does. So when the market goes even lower, we know that the IPO was done out of desperation and that early investors who had influence over the IPO price were eager to dump some…

> So when the market goes even lower, we know that the IPO was done out of desperation How is that the correct conclusion. It sounds like the correct conclusion is they still over estimated the market price. Nothing about desperation for or against.