This Is The Chart Uber’s Bankers Don’t Want You To See

Load WordPress Sites in as fast as 37ms!
Fight Censorship, Share This Post!

Contrary to the conventional wisdom about the “Amazon effect”, companies that lose tons of money with no clear path to profitability actually haven’t fared all that well in the public markets. 

Just look at Lyft, which sank below its last private valuation of $15 billion on Thursday, roughly $10 billion below its peak valuation on the day of its IPO. Snapchat is another notable example.

In fact, there appears to be a clear trend of cash-flow negative companies losing money for their investors after their IPOs. And if this trend holds for Uber, which is expected to price in the middle of its range (valuing the company at roughly $90 billion, per WSJ), a sign that demand for money-losing unicorns has started to wane, its post-debut performance could be the worst yet.

As we learned from Uber’s S-1, the company has burned through a staggering $12.1 billion over the past five years. It even warned investors that it might never achieve profitability, even as it struggles to establish itself as the ‘Amazon of transportation’, including food delivery and self-driving taxis.

Lowered expectations for Uber’s valuation appears to have already been reflected.


Looking back at the S-1, the company’s operating loss between Q1 2017 and Q4 2018 totaled $3.03 billion.


And here is the chart showing why now is the time to IPO (revenues and losses are both peaking).


And we imagine footage of Uber drivers protesting their low earnings by going on strike will definitely help endear investors to the stock.

This post has been republished with implied permission from a publicly-available RSS feed found on Zero Hedge. The views expressed by the original author(s) do not necessarily reflect the opinions or views of The Libertarian Hub, its owners or administrators. Any images included in the original article belong to and are the sole responsibility of the original author/website. The Libertarian Hub makes no claims of ownership of any imported photos/images and shall not be held liable for any unintended copyright infringement. Submit a DCMA takedown request.

Fight Censorship, Share This Post!

Read the original article.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.