If you don’t know Uber finally went public. It all started in October 2018, when they initally announced their next move at a valuation of $120 billion. In April 2018, their valuation went down by $45 billion to $75 billion. That’s a massive drop which could have been brought about with the financial activities of their main competitor Lyft.
Lyft went public a few months ago on a valuation of $22 billion. Their first sales went well with a share price at about $87, however, shortly after the price dropped majorly in less than two months to about $52. Perhaps this is why Uber decided to re-evaluate their valuation.
The company just went public and the shares sold in the market for $42 each which was $45 lower than the IPO offering. This is really rare and obviously a really bad sign. This was 4% lower than the IPO one of the worst in the US financial markets history.
Even worse the CEO, Dara Khosrowshahi just announced 2019 will be their worst year for losses. The company has been comparing itself with Amazon in their pitches to investors, stating the similarities lie in the fact that both companies were not profitable during the initial IPO. Well, in my opinion, the two companies should not be compared. They both have totally different business models, have invested in different infrastucture and their structures are varying.
Speculators are anticipating Uber will become profitable in two years. Uber share sales aren’t currently going so well. What do you think? Is it worth investing?