Am I the only one wondering how the HELL can you give those crazy valuations to Lyft and Uber ? Their latest financial is just a joke. Losing so much money with no clear path to earning money in the future. Uber at 100B is a complete nonsense. They will always lose money or risk losing most of their users. I simply don't see how they can be valued at more than a couple billions. They don't even have a self driving car to save them. I really have the feeling that over the last weeks and months we see a lot of articles trying to normalize those valuations that are not based on anything tangible. Are those paid advertisement by Uber ? People with skin in the game ? I wish the best to all Uber employees but seriously this is complete nonsense. I hope the market will look at the fundamentals and put a correct valuation closer to something like 10-15billions. If I had more confidence in the market I would short the hell out of those stock. But nowadays with hype based marketing you never know.
Yeah, over-valuation has been going on since the 90s, and got worse since 2003-4, but what do I know.
It's based on a per share of investment from recent large investors like Softbank ie what someone is willing to pay per share and times you by the outstanding shares. As to whether it is accurate or not that's up to the investor. Have they actually delivered anything outside of Uber service? All I see is tons of ideas that they invest in but no execution to market. Uber eats does not count by the way.
Yeah the latest per share valuation was for a market cap of 40B. Don't you have the feeling sometimes they it is a ponzy scheme and the only reason why SoftBank agrees on a valuation of 40B is that they believe some suckers will buy shares at 100B ? You just need to exit fast enough and not be the last one with worthless shares...
Why does Uber eats not count?
Did they got IPO insured yet ?
Smh basic concepts folks cant understand....uber will be a trillion dollar company in 15 years
Drinking the koolaid inside the company?
Sipping the haterade from the outside? From a person who has direct insight on the companies financials and expected growth initiatives , a trillion dollar company in the next 15/20 years is not impossible. Amazon lost money for years and now look at them
the investors will do a secondary offering and cash out at a high valuation. when the lockup is gone the stock will have crashed to a more reasonable level. classic vc move
And the average Joe dev who thought their MM equity Grant was worth something realizes it's worth a few zeroes less
So the interview at Uber or Lyft didn’t go well huh 😅.
Interested to understand how you arrived at $10-$15B. If valuation is purely based on profit making ability then shouldn't it be much lesser than that? Would love to understand the math behind $10-$15B
The valuations for lyft and uber are not based on anything that has to do with the fundamentals in the financial. The story is fairly simple. Transportation spending, including car ownership, is xxx trillion. Lyft and uber combined barely has 0.yy% or whatever that number is.
It is not necessarily a far off future where car makers can't quite make the scale required to produce a car for 20k
Facebook was a joke too initially. They had no set business model. Then they tapped into the ads business and gave stakeholders most confidence in their business. My guess is that Uber and Lyft might tap into the the ads business— that would make a difference
Wut lol uber is 100B ?
Based on the latest articles I read they want to start at a price of 100B.
I read 120B, agree that it doesn't make sense.