Uber:. Why do we believe the stock is undervalued? What is the case to be made that it should be higher?

Uber / Mgmt
GoronGuy

Uber Mgmt

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Uber, Gametime, Apple, Goldman Sachs, 3M, Medtronic, SendGrid, Sphero
GoronGuymore
Oct 3 16 Comments

Hey Uber family,

it seems post after post on blind is complaining about our stock price or blaming elt, or various forms of people complaining and whining.

While many of these gripes are valid and people have the right to be upset when expectation and reality do not meet I'm curious to hear people's thoughts on exactly why we believe that the stock should be higher?

While I also have been here for a while worked hard and hopes to see huge huge financial gain from our IPO it's hard to not admit that if I were an investor in this market I would look at uber and think that it's not worth what we want it to be.

Personally, I think we are undervalued due to our lack of showing a real, viable path to profitablity. While we have built an amazing company, we somehow left our the basics... Making actual money.

It's nice to always say it's coming in the future, but is it?

Anyway, would love to hear others thoughts on why we are undervalued, and NOT simply complain about it.

Identify these reasons, and then we go fix em....

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TOP 16 Comments
  • Google LyLs67
    Uber stock is a bad investment not because they lose money but the money they are losing is not helping build a sustainable profitable defendable business.
    Oct 3 2
    • Amazon / Eng batou
      this
      Oct 3
    • AT&T MsdR32
      Uber has market share, but riders and drivers are fickle. Nearly every driver does Uber and Lyft, so there's no loyalty. Riders are a bit more loyal, but what is Uber gaining by losing money right now?

      They aren't building a moat, they aren't going to put Lyft and the Taxi business out of business... All they are doing is buying time until they figure out an answer (maybe automated cars, maybe something else).
      Oct 3
  • Symantec GoRams
    Yes. Uber is fairly valued. Is this the floor - no. Will Uber be successful - yes. Deliver on the initiatives - Uber eats, ATG.

    Finally regarding stock prices, Look at AMZN. You dont have to be profitable for stock to grow. Heck, even Wework with 47$ billion in lease commitments are worth 10$ billion.
    Oct 3 5
    • Google jkLy05
      The difference is amzn can very easily be profitable if they cut reinvestments back into the business. They do not have as much competition from other online retailers, and aws is still making a killing. EBITDA for ttm is 33 billion with annual revenues of around 250 billion right now.

      It's not at all clear if Uber is able to break even completely after cutting costs. EBITDA for ttm is -6.9 billion. That's while revenue is at around 9 billion.
      Oct 3
    • Symantec GoRams
      Growth costs $$$. Uber is investing lot in growth.
      Oct 3
    • Google jkLy05
      Growth doesn't dictate valuation. Valuation is driven by how much money the company will make you now and in the future.

      Growth without eventually closing the profitability gap cannot last forever.
      Oct 3
    • Fast Enterprises / Eng nskcjx4
      WeShit isn’t worth $10 billion lol try 2 at most
      Oct 3
    • Uber BrattyP
      Stop comparing to Amazon. This isn’t even a close comparison.
      Oct 3
  • OpenTable Meliodas
    The stock is currently overvalued, because the company doesn’t make money and capital is being burned to subsidize consumer rides, despite taking a large cut of the transaction.
    Oct 3 2
    • Uber / Mgmt
      GoronGuy

      Uber Mgmt

      PRE
      Uber, Gametime, Apple, Goldman Sachs, 3M, Medtronic, SendGrid, Sphero
      GoronGuymore
      OP
      I think that's a pretty simplistic way to view it. You are not wrong, but pretending that no company can be valued without making money is ignoring history.
      Oct 3
    • OpenTable Meliodas
      Never said no company can be valued without making money. I said this company is overvalued, because it isn’t making money and doesn’t have a viable roadmap.
      Oct 3
  • Lyft sproutes
    Same as Lyft: I’ve invested time and effort so it must be the case or else its not fair.
    Oct 3 0
  • Uber / Eng travis_k
    I don’t think it’s undervalued. I’d just prefer it were higher so I would have more money.
    Oct 3 0
  • Facebook public2
    Reason 1: they don't make money
    Oct 3 0
  • New NgTu21
    Continue to grow revenue and shrink losses. Simple as that. If Q3 performance shows improvement and meets/exceeds guidance the stock will go up. Dara can pontificate all he wants on the company's long-term roadmap and sustainability, but the proof is in the pudding.
    Oct 3 0

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