The Uber IPO,
One of the most anticipated IPO’s of recent history, Uber has applied to go public. I foresee a surge in the stock after the
initial IPO but, there are some things to keep in mind.
In Q2 of 2018, Uber’s revenue was up 8% quarter over quarter at 2.7 Billion, year over year a 51% increase but, as Uber’s
booking increased its losses did as well, 304 million in losses at Q1 and in Q2 404 million after its adjusted EBITDA. Ubers
losses are due to its investments in its different revenue platforms such as Uber eats in Africa, the Middle East, and
Europe. Uber is also continuing its investments in autonomous vehicles. Even after the death of a pedestrian in Arizona.
Ubers own investors have advised them to stay away from their autonomous vehicle investments according to The
Information media company.
It goes to show Uber is in an expansion phase and will be for some time to come. Uber is wearing many hats investing in
different platforms in many regions. With these investments comes risk. What platforms are they going to succeed in? I
foresee failures to come at the expense of the stock, this will be a rocky road for them until they find their distinct
platforms to pursue. Some of Ubers Investment failures include their southeast Asia division, and Uber's instant delivery attempt.
Uber has been releasing its financial statements even though it is not required to. This decision is smart because they
have been losing millions, and if they surprise their investors after going public with heavy losses there will be a
significant sell. If I was going to buy Uber, I would not buy their IPO, I would wait until they provide financial reports of
positive gains once they have solidified their platforms to pursue and their experimental projects have finally failed.
Either way Uber has disrupted the market and made a name for themselves changing Americas transportation
experience. What are your opinions? Will you be investing? What price point would you enter? What price do you think
the stock is going to be after the IPO? Have you driven for Uber? If so, what are your opinions of the company?
-Like always everyone this is Cotey Speaks Finance! Feed the bear, feed the bull and good luck investing!
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Submitted March 05, 2019 at 12:19AM by CoteySpeaksFinance https://ift.tt/2Hgkfaa
