I am a fan of Uber, Let’s assume Uber is publicly traded with market cap of 62 billion, given this earning report, would you buy or sell? https://www.google.com/amp/s/www.cnbc.com/amp/2018/08/15/uber-q2-2018-revenue-bookings-slow-slightly.html
Didn’t get it. ?
How does revenue accounting with for Uber eats? Is the restaurant cut going into revenue or going into only bookings. Even with Uber eats growth, if bookings are growing only 38 percent, then that does seem concerning.
Regression to the mean
The revenue was padded by divesting efforts in other countries. I thought it could have been better.
With revenue of 2.5b this quarter, that is 10b this year. 62b valuation is 6 times this year's revenue. Does p/e of 6 makes sense?
TIL i might just be dumb enough to work at Uber
Lol. pe is price to earnings...not price to revenue. And pe for uber is infinity right now.
Doesn’t include equity stakes around the world
I think it's still unclear to the investor market if ride-sharing is ultimately just a race to the bottom that will only be understood once both Uber and Lyft go public, I.e. will they be forced to keep slashing their percentage of the amount they charge to grow the business, or will they be able to take an even bigger stake.
Sell, sell, sell. I can’t see any reason why Uber has a $62B market cap. There’s very little stickiness there - the drivers want to bail, and customers will go wherever cheaper prices are as there’s no “additional value” Uber provides about getting in someone else’s car. I can’t see Uber having a lock on driverless, which is the main thing people are waiting for as a catalyst in price reduction. A car company is going to do that first, and then Uber is just a matchmaker algo, which isn’t really all that difficult. Race to the bottom.
Declining revenue growth is expected but a red flag to me
Yeah. I was expecting slower revenue growth due to Uber is already operating in most of suitable cities for ride-sharing, growth is more from deeper penetration for rideshare I think. Also Uber has been advocating Uberpool and expresspool which also hurts revenue. From what I saw the stock of Grubhub, Ubereats’s expansion is not that easier as well. I think if Uber holds on its market share, preventing competitors to gain market sharing by burning money, eventually the competitors may have to settle down as a second player to Uber.