Uber is getting ready for an IPO. Here’s what this means, and what you should know about investing - enjoy! Add me on Instagram: GPStephan
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DISCLOSURE: This video is purely my opinion. Any amount of speculation is for entertainment purposes ONLY, and this is not to be considered financial advice. I have no monetary gain from the performance of Uber stock.
Uber is one of the largest, if not THE largest ride-sharing company in the world with 91 MILLION monthly users. They also expect to IPO and become a publicly traded company with nearly a $100 BILLION dollar valuation.
However…when you go into the financials, that’s where things start getting a little shaky…because they LOST $1.8 Billion dollars in 2018. In addition to that, they’ve handled ongoing lawsuits….fighting regulation every step of the way…AND they warn that they may NEVER achieve profitability…so from my perspective, I’m not seeing how this IPO would make a good investment.
Just look at the past performance of some previous IPO’s…the average return for IPO’s from 2012-2015 was just 7%. Meanwhile, the SP500 was 60%. Think about that for a second…the overall stock market performed nearly 10x BETTER than tech IPO’s during that timeframe…and lets be real, picking a winning IPO is going to be like picking a needle in a haystack.
https://cbi-blog.s3.amazonaws.com/blog/wp-content/uploads/2015/11/vc-backed-ipo-performance-tech.png
So if you’re interested in investing in Uber, here is my take on it:
First of all, NEVER buy on hype. Hype just means the price is artificially inflated through investor exuberance and enthusiasm, and this doesn’t reflect the TRUE value of a company.
Now If you believe OBJECTIVELY that this is a good LONG TERM BUSINESS, and you believe they’re an undervalued company with more room to expand - than by all means, invest in it. But understand that MOST investors are emotional, looking for quick profit, and that will effect the price of the stock that YOU pay, especially around the time of IPO.
However, just to be fair…on the GOOD side of things, I do believe Uber can learn from Lyft’s mistake, and I do think that them filing for an IPO afterwards wasn’t by random chance. I think they’re large enough where everything they do is VERY strategic, and them waiting to IPO could give them some advantage over Lyft. Especially because they can adjust their market valuation to reflect a more reasonable price.
But for myself, I consider:
How will they achieve profitability as a company?
Once we see self driving cars, will we even NEED an Uber anymore?
If so, how will their business adapt?
What’s to stop Tesla from making Self Driving cars and taking over entirely?
And how can Uber continue to expand?
To me, there are too many questions to consider this a viable investment without seeing how things develop.
All I’m saying is this: be careful out there, analyze what you’re doing, don’t get caught in hype, and be smart.
And one more time…this is not financial advice, for entertainment purposes only, and I have no idea what I’m talking about. Resources:
https://qz.com/1551934/uber-is-slowing-down/amp/
https://www.retirebeforedad.com/uber-stock/
https://www.cnbc.com/2019/03/19/lyft-uber-and-next-silicon-valley-ipos-will-help-the-rich-get-richer.html
https://cbi-blog.s3.amazonaws.com/blog/wp-content/uploads/2015/11/vc-backed-ipo-performance-tech.png
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
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By Stock Chat

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33 thoughts on “A warning about the uber ipo”
  1. Avataaar/Circle Created with python_avatars blackwide blackwide says:

    good logic

  2. Avataaar/Circle Created with python_avatars personal hobbies says:

    Good video you predicted the future, what are your thoughts on Aurora and Canopy?

  3. Avataaar/Circle Created with python_avatars ladybug Stewart says:

    Uber and Lyft rob their employee’s and they use to rob their customer’s.

  4. Avataaar/Circle Created with python_avatars takeiteasymac says:

    Your really my guy. Literally, I just purchased 2 shares in Uber and YouTube’d the topic and here you are. Keep grinding bc I watch your vids on a daily !

  5. Avataaar/Circle Created with python_avatars Arison Arias says:

    Where can i look at the stocks? Like what website or app

  6. Avataaar/Circle Created with python_avatars Jasmine Cook says:

    You were right Graham 👍🏾

  7. Avataaar/Circle Created with python_avatars JAMES PULLIAM says:

    Ok idea for a video. Remember u said Uber and lyft we’re going Public just because they invested all there money. And wanted free cash. Or something like that. Well they didn’t. They invested even more. And now they have Uber scooters. Video on your thoughts please. Also loved the $0.20 ice coffee.

  8. Avataaar/Circle Created with python_avatars KidA Crimson says:

    I despise Uber. Terrible, unethical company!

  9. Avataaar/Circle Created with python_avatars Red Heart says:

    people don’t understand the VALUATION of a company, they just look at the price of one share haha. Do u want five $20s or ten $10s?

  10. Avataaar/Circle Created with python_avatars Red Heart says:

    i bought 1 share of Uber

  11. Avataaar/Circle Created with python_avatars rick w says:

    ya Uber ain't doing so well. your intuition was correct. But you can always do options…. still make money off a failing company.! Also early investors get a different class of shares (founders shares, etc) which convert to stock, they usually only paid a fraction of the ipo price. Even if Uber stays at this low level, these early investors will still get their money back!

  12. Avataaar/Circle Created with python_avatars Arctic wolf says:

    Uber dont have anything to back this money up ..
    they dont own the drivers, or the cars, or automatic driving cars, they can't make money, they always getting sued, the drivers are not happy with them always protesting/striking, all what they have is an "app" they started at 110 b .. then oh the we are not worth that much we will go with a 100, then oh 90, then lyft came out and sinked so Uber goes like oh 80 now .. then on the opening day they went to 75 …. dude … give me a brake .. from 110 billion to 75.. that's NEVER a good sign

  13. Avataaar/Circle Created with python_avatars Soham B says:

    my friend has to take a ride to airport lot of times. So far the experience is that Lyft drivers are dumb as compared to Uber drivers. – just a personal opinion / may be coincidence

  14. Avataaar/Circle Created with python_avatars Andres Gutierrez Jaramillo says:

    Totally agree

  15. Avataaar/Circle Created with python_avatars Chris2007a A says:

    I’m not entertained.

  16. Avataaar/Circle Created with python_avatars Jonathon Christ Follower says:

    May8th UBER Strike!! Cool lamp

  17. Avataaar/Circle Created with python_avatars Lv TBus says:

    What about last Friday's Beyond "BYND". It went from $25 to 66, now $79! I stopped eating meat 2 years ago, have their Beyond burgers at Carl's JR. And other options and believe in their products. Now they are at Del Taco too. They say though too they will probably never reach profitability. Yet this! 100.000 would have been 260k! Damn I missed out on it due to my inaction.

  18. Avataaar/Circle Created with python_avatars Chaz Smith says:

    Uber will tank faster then a dead goldfish in a cement jacket.

  19. Avataaar/Circle Created with python_avatars KERB Photographic says:

    This take is wrong, Uber is nowhere near peak…they are just beginning. They need money to match Tesla's autonomous vehicle fleets. Uber's valuation should not be based on profitability. Lyft is an unfair comparison, neither is Snapchat.

  20. Avataaar/Circle Created with python_avatars Teolulz says:

    what do you think about a video on airbnb IPO? i think many will want to know lol

  21. Avataaar/Circle Created with python_avatars Jayli0 says:

    "value of a 100 Jenners" LOL

  22. Avataaar/Circle Created with python_avatars Contagion Hoax Dot Com says:

    I feel you hit the hammer on the thumb!

  23. Avataaar/Circle Created with python_avatars um t says:

    Self driving cars is what uber wants tho.that is thier business model. I reckon they are hoping for Google or tesla to buy then out once they have thier self driving cars ready for the road.

  24. Avataaar/Circle Created with python_avatars Angie Rose says:

    uber pool express is cheaper

  25. Avataaar/Circle Created with python_avatars Jaesais says:

    Only 5k likes, seems you have ~85k that are doomed 🤯 makes sense, guys that liked are the 5% that will succeed. 😉😏

  26. Avataaar/Circle Created with python_avatars Keith Goh says:

    Most tech IPOs are pretty much pump and dump but legal.
    Don't know how Uber is going to convince anybody with those losses.

  27. Avataaar/Circle Created with python_avatars john lerner says:

    Uber ROBS everyone who contacts it. They Bankrupt their drivers, pay them nothing for gas.. What will they do with YOUR money?

  28. Avataaar/Circle Created with python_avatars ADub19472 says:

    In my opinion, IPO’s are many times ways for investors to get their money out of a company. Investors do this so they can reinvest this cash into more start-ups due to their personal risk/return profit being different than most of those who purchase stocks. The fact the investors want to cash out is not always a way for them to cash out at the peak, but rather to cash out after the company has seen their best ROI taking into account their personal time value of money. Not talking about Uber specifically, but not all IPO’s have investors who are trying to sell out at the peak value of their company.

  29. Avataaar/Circle Created with python_avatars John Iii says:

    Uber and Lyft have both always been a stock play. They both have done nothing but loose tons of money

  30. Avataaar/Circle Created with python_avatars G Korb says:

    Nice video. That's why I invest a lot of cash in residential reits. People will need a place to live regardless of self driving cars.

  31. Avataaar/Circle Created with python_avatars H1KO says:

    Finally someone who gets it. Uber is just trying to cash out the early investors.

  32. Avataaar/Circle Created with python_avatars Gajh says:

    you cheap bastard

  33. Avataaar/Circle Created with python_avatars WHATEVER GOES FOR ME says:

    Self-driving cars are very problematic if you watch the latest about TESLA. The only reason we should be afraid of TESLA is crony capitalism and not the free market. World governments are waging a war against combustion engine and petrol so they are mandating laws to support electric cars and self-driving cars and force people to buy these cars that are not sustainable in the long run just like green energy that is not yet fully developed.

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