What’s going on?
Uber went public last week Friday, meaning anyone can become a co-owner of Uber by buying a part of it. However, Uber, which was once valued by private investors at a high level of $120 billion, is currently worth about half that. As Axios reported, IPO investors lost $655 million last week Friday alone, while the company’s investors from 2016 to 2018 saw a combined $2.27 billion disappear.
Whoa. Why though?
3 possible reasons: Mark Cuban said Uber waited too long to go public, Trump’s war with China affected the US stock market and also the fact that Uber’s prospect of achieving profitability isn’t anytime soon.
What’s Uber saying?
It’s okay, Facebook and Amazon also had similar disappointing public debuts. Uber’s CEO, Dara Khosrowshahi (not sure we can help you in pronouncing this) sent a memo on Monday to employees that the stock “did not trade as well as we had hoped post IPO.”
He said, “We will be judged long-term on our performance, and I welcome that, it’s all in our hands.”
Did anyone even really gain from this?
Sure, a lot of people did. Lance Armstrong, the cyclist who had to pay millions to settle legal issues related to taking performance-enhancing drugs, invested about $100,000 which might be worth about $20m.
Beyoncé in 2015 was offered $6 million to perform for a corporate Uber event in Las Vegas. Instead of cash, she asked for payment in equity and now that $6 million has turned into much more money. 🙌
“My great-great-grandchildren already rich, that’s a lot of brown children on your Forbes list” Beyonce in Boss