Press is saying Uber investors lost money. Is that actually correct? I can't imagine late stage investors put money in without preferences so they get their money back. But maybe they were actually that dumb? At last, the house of cards begins to collapse...
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- Palo Alto Networks !💥It's been one day and the entire market was doing poorly. No need to jump to conclusions yet.
- There was a chart of what prices people invested in Lyft at and Fidelity is close to losing money.
Don't know if one exists for Uber but I imagine some late round investors could have lost money/be close to losing money if it drops a bit more
- Lyft wXfl07The last 2 funding round VCs lost money. The IPO investors (many were institutional, and also mutual funds) lost money on their $45 investment. Uber also lost money in 2017 with a down-round. Uber seems to have particularly deep pocketed "stupid money" investors. This was common in 2001, too.
I frankly don't think it's a good sign that a bloated company like Uber can IPO at a time when they are never going to have good growth numbers (above 20% q-on-q) ever again. It's a sign that the stock markets are sick that they let this company IPO. If we let more bloated companies IPO at this end-state - with the VCs pocketing 100% of lifetime profits- then the long-term returns on stocks will be 4%, best-case.
- Uber is still growing at 40% a year which is a dream for many public companies. It's in a global transportation market which is $5 Trillion and also it's diversifying in different areas of transportation from last mile tech to Freights.
Why shouldn't the stock markets let it IPO ?
- My understanding is most people can't buy at the IPO listing price. A select few brokerages buy, they then sell to others.
Companies also don't actually loose money when the stock goes down, they already made money by selling to the public at IPO.
The only thing that matters is what price you buy vs what price you sell, and the time it takes before you sell.
- Who Gets To buy IPO Stock?