Uber goes into reverse as first day stock price disappoints(theguardian.com) |
Uber goes into reverse as first day stock price disappoints(theguardian.com) |
In addition, I have questions about the service's ability to grow significant multipliers. It really feels like they've reached the majority of their markets three years ago, and have been tweaking things since. Why would you invest in this? Is there a clear value proposition for future growth?
IPOs aren't even added to the indexes until it's been some months since their IPO.
There's a lot of reasons why people would buy Uber. But for anyone who is investing safely for retirement, I think it's easy to see that this is not an investable company at the moment.
Who buys stock at $45 and then the very next day sells it under that?
Data-based traders (including bots) who dont suffer from the sunk cost fallacy.
Also, who says the people selling were IPO buyers? Other people (including some that would not be impacted by insider windows) had stock before the IPO but had less ability to trade it when it wasn't public.
Yeah I could see myself bailing out if I had knowledge of what Uber was like from the inside.
They could follow the Amazon model to profits, get big enough to dominate the niche, but they at least need a profit engine, that would give them cash flow. It would let the company grow without having to continuously have to raise money and keep the stock price stable.
Look for the company to continuously raise money or to reduce service. None is good for the stock's future price.
I have not purchased or plan to purchase any Uber stock, I just think it's important to have perspective on this event.
https://en.wikipedia.org/wiki/Initial_public_offering_of_Fac...
This is a ticket to an Uber monopoly.
Why wouldn't you pass a tax on search and social media companies that sets the minimum wage of engineers to 1 million dollars a year if you want to break up twitter, google, and facebook? That's logical equivalancy.
If the existing investors had much more of a taste for losses, why the IPO?
How would they keep out competition if the barrier to entry is low?
It’s a game played to death in every other market.
I am also for using data protection laws (and not minimum wage regulations) to break the ability of social media companies to survive (or at the very least, rein them in). Have to use the right tool for a job.
The markets are irrational sometimes. Basic economics assume rational behaviour, which is something that cannot be assumed.
> And indeed, I am all for using laws against abusive corporate entities.
I don't think you can pass laws against companies specifically. First, define what you mean by abusive. Uber/Lyft doesn't have a gun against your head to force you to drive.
You have to pass them against specific behaviours. Also, for ridesharing companies, what does "per hour mean"? Time you spent logged in, adding time you spent stuck in traffic getting to the customer, or time you are actively moving towards your destination after pickup? There are obviously unintended side effects to give in to knee jerk reactions to something that you feel is wrong. Would Uber/Lyft drivers be happy if the companies implode and they're stuck with a bunch of worthless predatory leases on cars? Or the fact that part time drivers no longer have that option to at least make some money?
edit - basically I think whoever works out the craigslist version of Uber will eat Uber's lunch and it is quite likely someone will.