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Sunday, April 28, 2019

Uber Is Seeking A $91 Billion IPO. The Long Term Bullish Case for Uber Shares

Wes Messamore
Hacked


Uber Technologies Inc. announced Friday it will be seeking an initial public offering with a valuation of $80 – 91 billion. That figure is a revision from earlier expectations that would have valued the 21st century taxi company in excess of $100 billion at the time of the IPO. The company may have settled for the lower number knowing that it lost another billion on operations in the last quarter.

The ride hailing service giant posted the $1 billion loss the same day it announced the expected valuation for the upcoming IPO. The steep losses for Q1 of 2019 come after a year in which Uber spent $1.8 billion more on operations than it took in from bookings and other sources of income. Uber bears say the company is just too unprofitable heading into its IPO to be a good investment.

But it’s important to keep in mind how conventional a path to profitability Uber is following for a massive tech monopoly.

Read more at Hacked.


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