
Uber goes into reverse as first day stock price disappoints - coffeeyesplease
https://www.theguardian.com/technology/2019/may/10/uber-goes-into-reverse-as-first-day-stock-price-disappoints
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leshokunin
It's going to be a wild ride. While (*most) people seem to like using Uber,
headlines about how the unit economics don't work, how drivers can't make a
living, how their working conditions aren't tenable keep popping up. How does
Uber intend to address this?

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?

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strikelaserclaw
The whole thing is bizarre, who is buying these stocks?

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sigstoat
not the index funds, unlike what the sibling comments are suggesting.

IPOs aren't even added to the indexes until it's been some months since their
IPO.

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Waterluvian
So I'm kinda dumb when it comes to the stock market. Can someone explain how
this happens?

Who buys stock at $45 and then the very next day sells it under that?

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dragonwriter
> 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.

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Waterluvian
Ah interesting. I didn't think anyone who owned stock before IPO could sell it
that soon.

Yeah I could see myself bailing out if I had knowledge of what Uber was like
from the inside.

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cududa
They can’t. There’s a 90 day lockup period

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WheelsAtLarge
This can't be a surprise to anyone. Given Lyfts performance, after it's IPO,
the fact that UBER is not profitable and really doesn't have a near term plan
to be. The stock will continue to struggle.

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.

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kahnjw
Can Uber count on being the incumbent the way Amazon did? Amazon built up
physical logistics infrastructure and a subscription service that serve as a
barrier to entry for competitors. Uber's only real market foothold is a
network of drivers, the turnover rate of which is high. To most users, ride
shares are a commodity. Savvy user's already check available services prior to
booking.

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angrydev
Facebook's IPO was also off to a rather rough start[1], so I am not putting
much stock into what happens in a single day.

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...](https://en.wikipedia.org/wiki/Initial_public_offering_of_Facebook#Subsequent_days)

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garmaine
As was Google’s.

