Did Uber investors actually lose money?

DigitalOcean dueushdb j
May 12 19 Comments

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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TOP 19 Comments
  • Palo Alto Networks !💥
    It's been one day and the entire market was doing poorly. No need to jump to conclusions yet.
    May 12 2
    • New / Eng QTdN03
      Dang it, I already bought my Jump to Conclusions™️ mat!!
      May 12
    • Palo Alto Networks !💥
      Well, it is a great idea.
      May 13
  • Groupon jay_kay
    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
    May 12 4
    • Facebook Ubеr
      IF they sell
      May 12
    • Groupon jay_kay
      You are correct in that no loss is realized yet, but in hindsight they are worse off than not investing (because they got a worse price than buying post-IPO and that money was tied up).
      May 12
    • Facebook Ubеr
      So pretend the stock went up to 200$ on Friday and then by lockup it went down to 30$. What does it matter what it was or is until lockup?
      May 12
    • Uber / Eng mH7bSe
      "I don't lose/gain money if I don't sell" - only IRS and stupid people should think this way.
      May 13
  • Lyft wXfl07
    The 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.
    May 12 4
    • Amazon crypto*
      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 ?
      May 12
    • Tableau / Eng
      WorkingIt

      Tableau Eng

      PRE
      Microsoft
      WorkingItmore
      Uber's growth pace will slow after IPO. Count on it. It nearly always does. Typical pre-IPO bubble.
      May 13
    • Amazon crypto*
      True but even after that it will be way higher than most public companies. Even if stays around 20%
      May 13
    • Tableau / Eng
      WorkingIt

      Tableau Eng

      PRE
      Microsoft
      WorkingItmore
      Uber's IPO price placed its market cap well above GM and Tesla which is crazy for an over-hyped glorified taxi service. Lyft's market cap is more reasonable.
      May 13
  • Amazon qwertyup
    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.
    May 12 2
  • Google snatch
    PayPal lost 37m.
    May 12 0
  • New / Eng |l|l||l|l|
    I think the more recent investors' investments are worth less now due to the current market valuation. They will only have lost money if they had actually sold some of their shares.
    May 12 0
  • Indeed / Eng Barney 🦖
    I doubt it
    May 12 0