Yes they got so many ppl signing up as a result of inflation.Their earnings was pretty good tbh.
Uber has the financials of a startup but is almost 15 years old. They find new and creative ways to lose money every quarter ($33B of equity destroyed so far). The company generates cash but only because stock based compensation isn’t included in FCF. Consumer switching costs are low (see Austin when Uber and Lyft left the market), and there is only so much juice left to squeeze from the drivers. I am old enough to remember all the bullshit dotcoms from ‘99 and Uber looks a hell of a lot more like pets.com than Amazon. $56B market cap is insanely 2.5x the value of eBay for what is essentially a money-losing “eBay of taxis”. I love an ATM that gives me $20 bills for $19.50 as much as the next guy but I wouldn’t call it a sustainable business model.
Most of that loss lately is writedowns of equity stakes, so it doesn't reflect the core business. We have a ton of pricing power as we've shown over the last few quarters. Agreed on stock based comp, we need to figure out how to rein that in. Don't really agree with your orher points but you're definitely welcome to your opinion
@glerp Uber financials are public, you are free to your own opinion as to whether the turnaround is imminent and perhaps you have insider information that I don’t. However, it is a fact that Uber has burned $33B of shareholder equity throughout its history and it is a fact that in Q3 Uber opex exceeded gross profit by $0.5B. The write downs you are describing are IN ADDITION to that $0.5B operating loss. If you think as an Uber marketing guy that you can raise fares and fees on taxi service and food delivery in a recession, more power to you. As a point of comparison, Amazon burned about $4B before starting to generate profit for shareholders. Uber has burned 8X as much. These are all facts and not something anyone can disagree with. My opinion is $28 per share for Uber is still $20 too much.
Uber is doing well with RTO happening and covid behind us. Difficult to say about layoffs in future if economy goes further south many companies will do layoffs. Look at Q3 results, Uber went Up 15% while Meta, Twilio, Atlassian, Amazon, Google all crashed 30%
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I work at Uber nd it's doing well. Future who knows with the market