Originally published at: https://boingboing.net/2019/05/10/uber-stocks-falter-on-first-da.html
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“Uber - stocks or rides, we lose money on every share.”
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I have a liver right now!
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Anybody who quotes Chumbawamba is all right with me.
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[High Fives] & [Hip Bumps]
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Yay! Shit company treats there workforce like shit deserves their stock to go like a shit penny
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Man cannot live without a liver …
– The Bold Ones: The New Doctors
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Meanwhile, schadenfreud futures are trending up!
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You can’t spell “livery” without “liver”.
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Ugh. Uber sucks, but this story is stupid. The financial press is just terrible about this.
A stock having its IPO and staying about even or dropping a small amount is what you want. If the stock goes up it means that the company undervalued itself and the bankers that brokered the IPO got a huge windfall while the company gets less capital for whatever it thinks it needs the money for. It says nothing either way about the long term (or even short term) viability of the business.
This happened with Facebook too – in the hype preceding their IPO they revised their share price upwards several times, settling on $38. Then the first day of trading everyone was in a tizzy because it dropped and then closed at the same price. That doesn’t mean they screwed up, it means they did a good job! 7 years later it has gone up 5x. Go ahead and hate on Facebook’s policies, but their “poor” IPO showing was a made up problem.
These stories happen because the financial press only understands, thinks, or cares about the perspective of investment bankers who would of course love to double their money on the first day. Everyone else (other investors, customers, employees) either doesn’t care or would prefer that the IPO price had been higher so the company got a better deal.
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Exactly! It will be 2 years before the viability of Uber and its stock is realized. It may go down or it may go up, and the results of today’s offering are irrelevant.
Ugh. Uber sucks, but this story is stupid. The financial press is just terrible about this.
This. ^
(And… Jim Cramer? CNBC? Seriously, Rob?)
How could it not? I’m just amazed it’s doing this well.
Uber: “Our only path to profitability requires technology which does not exist and may not exist for the foreseeable future as well as facing serious regulatory hurdles. Also, possibly we won’t be profitable then, either, because we’re currently externalizing a good chunk of our costs, which would stop being the case.”
Investors: “Sounds… okay? But maybe not $45 a share okay.”
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I don’t know. They didn’t sell a lot of the company, and I would guess (at least there was much press suggesting) they had priced it to go up. The idea is to get “a pop”, which generates positive PR and a financial currency they could use for acquisitions. An 8% decline suggests someone got something badly wrong. Its not disastrous but it is the 4th worse US IPO debut of the decade.
Doesn’t matter if the business model is sound, but I don’t really think it is. That said, I am not sure I wanna short this one. I am already short Lyft and Tesla. So how bad can it be if I lack the conviction to short it?
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Why in the world should that be my metric on where to put my hard earned cash?
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Well quite! But never take investment advice from anonymous people on the internet. Obviously i think its a bad business, but its an opinion, nothing more. I think I can back it up, but what does that prove. That said, the Tesla short looks promising.
May it go to zero, and stay there until being de-listed.
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What’s that? Uber isn’t actually worth $82bn? Reverse-gear IPO shows the gig (economy) is up
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