2019 has been quite a year for Technology Investors with several large IPO’s hitting the market so far. We’ve seen a few very successful debut’s from company’s like Zoom ($ZM) and Pinterest ($PINS). We have also seen a significant flop in Lyft ($LYFT) – there was a lot of hype behind the ride share company who has seen almost a $30 loss per share since its debut in the Spring of 2019.
Uber ($UBER) has been a company that many investors have been exciting to see IPO. Uber is certainly the dominant player in the ride sharing ecosystem – and despite the fact that they are burning a ton of cash right now and nowhere near profitability – they certainly continue to grow significantly in users and revenue QoQ.
My $.02 on this IPO based on the significant enthusiasm behind is this: we saw what happened to Lyft, who despite a lot of trading volume in the first few days has seen a big drop off in price and attention. Uber is looking to make the biggest debut in terms of valuation since Facebook – and if you’d invested in Facebook at their IPO you would have made a measly 510% on that investment. Uber is a stock I will be monitoring for the first few weeks – and assuming that they are able to stabilize in the market, it will be a good long-term growth investment. We know that ride-sharing isn’t going anywhere – and the Uber Eats, Scooter, and Bike craze also continues to grow rapidly.
What are your thoughts on Uber as an early investment?