Over 77% of Uber Employees Believe that Uber Stocks are Undervalued

While 57% of the overall tech employees believe that Uber is currently overvalued.

 

“Obviously our stock did not trade as well as we had hoped post-IPO,”

– Uber CEO, Dara Khosrowshahi, in an email to employees on May 12, 2019

One of the most anticipated tech IPOs turned into a disappointment, when a lower than expected IPO price of $45 kept falling and Uber Technology Inc.’s current valuation of $62 billion is worth barely half of what Wall Street banks predicted last October.

With two consecutive disappointing IPOs from Uber and Lyft, we wanted to measure the real sentiment of employees working at these companies and ask what they thought about Uber’s valuation.

 

Survey:

We asked our users to answer the question: What is your opinion on Uber’s valuation after IPO? They could answer with three options: “Overvalued,” “Adequately valued,” and “Undervalued”. The Survey ran from May 13 – May 15 and was answered by 6,436 users of the Blind app. Users could only answer once.

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Results:

  • Uber employees had an overwhelming number of 77.09% of employees answering with “Undervalued”.
  • 14.35% of Uber employees believe that their company was “adequately valued” and 8.57% believe they are “overvalued”.
  • 39.13% of Lyft employees believed Uber was “Undervalued”, 28.26% voted “adequately valued” and 32.61% stated Uber was “overvalued”.
  • For overall tech employees, 23.37% said Uber was “Undervalued”, 19.42% voted “adequately valued” and 57.21% stated Uber was “overvalued”.

 

More conversations about Uber IPO on Blind:

How Shares Are Priced (Uber @ $35) – Uber employee

  • “Potential matters too. Uber has a wider market than lyft. Netflix is 10x, for example.” – Google employee
  • “It lost $3B last year, and for many other reasons I think it’ll get much worse… Unlike Amazon IPO, for example, Uber is not cash flow positive.” – Oracle employee
  • “UBER is in price discovery phase and not highly correlated with market. Wait a few weeks.” – Uber employee

What happened to the valuation of 120 billion in December – Nvidia employee

  • “It’s all dot com hype bubble again – only 3x bigger” – Oracle employee
  • “Considering the global size of the taxi market is roughly 100 billion, what kind of idiot predicts a larger valuation that the size of the entire segment when Uber isn’t delivering more sizeable services.” – Microsoft employee
  • “60bn is a decent valuation. I doubt it’ll change much over the next year or so.” – Microsoft employee

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