Dara Khosrowshahi, CEO of Uber, spoke on 23rd January 2019 at WEF 2019 in Davos, Switzerland.
Adam Galica | CNBC
Uber hopes investors will make their debut on the public market, and hopes investors will tailor the stock to Amazon rather than their close rival Lyft. Uber plans to compare itself with Amazon during its pre-IPO roadshow to justify the billions of dollars it will continue to lose, the New York Times reported.
It is no wonder that Uber Amazon chose as a model share performance. The stock price of Amazon has multiplied at its 1
Amazon's success in the public market, despite losing money for much of its existence, is a preferred comparison for other companies that make their debut without profit. Amazon is the exception, not the rule.
Amazon's IPO is a practical reference point for Uber, with an adjusted EBITDA loss of $ 1.85 billion in 2018 and declining sales growth. In its updated S-1 submission last week, a loss of $ 1 billion was reported for the first quarter of 2019. Amazon also debuted without making any profits and said he intends to invest in expanding his business into new areas, as Uber has said.
Like Amazon, Uber is proud to diversify beyond the core area for which it is known. While Lyft's focus was on car pooling and personal mobility such as electric scooters, Uber expanded into delivering food, freight and even flying cars. However, for Amazon, profitability was largely driven by Amazon Web Services, the represented company, accounting for 13% of Amazon's total revenue and 50% of first quarter 2019 operating income. It's not yet clear if Uber has the same breakout business has that can lead to profits. Uber's other bets are unlikely to provide as much value as AWS Amazon does, said Paul Meeks, the senior portfolio manager of Wireless Fund, told CNBC earlier.
"They will try to use their platform for other things, but the other things will be transportation, because that's their appearance, and the transport business has a lot of established players," Meeks said.
After Uber set its shares at between $ 44 and $ 44, the valuation fell $ 50 from $ 100 billion to $ 80.53 billion at $ 91.51 billion, fully diluted. But even at the lower rating, Uber's Amazon comparison fuels the "fear of missing."
"This is a big fear," said Wedbush Securities analyst Dan Ives to CNBC. "This has been a landmark event for investing in tech stocks over the last 20 years."
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