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How Aggressive Is A $90B Uber IPO Valuation?

By Crunchbase News

Morning Markets: A new report brings a fresh, potential Uber IPO valuation. Let’s peek at it. The Uber IPO may be paring itself down ahead of actually happening, according to a new report from TheRead full story

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  • Let us not forget a simple truth: the “cover price” on an IPO is the company’s ask. The transaction price will be determined by public investors. If there is enough demand, the price will be above $90 billion. Conversely, weak demand would force Uber to either lower the price or withdraw the offering

    Let us not forget a simple truth: the “cover price” on an IPO is the company’s ask. The transaction price will be determined by public investors. If there is enough demand, the price will be above $90 billion. Conversely, weak demand would force Uber to either lower the price or withdraw the offering. A version of that process will reoccur every single trading day after the offering.

    Hopes for Uber are high. A $90 billion valuation won’t hold up if Uber cannot deliver profits, which have been elusive to date.

  • It’s about right. The SoftBank tender offer a year ago at $48bn was too low and the Morgan Stanley estimate of $120bn seemed high. Given Uber’s footprint, customer base, network, innovation and platform but also the lack of profitability (yet), this is probably the right landing spot. Interestingly

    It’s about right. The SoftBank tender offer a year ago at $48bn was too low and the Morgan Stanley estimate of $120bn seemed high. Given Uber’s footprint, customer base, network, innovation and platform but also the lack of profitability (yet), this is probably the right landing spot. Interestingly, had Uber gone public a few years ago before the problems began, no one would have blinked an eye at $90bn.

  • The profitability part comes down to how Uber can effectively manage marketing expenses and whether they can reduce losses at Uber Eats and at the self-driving unit. Sticking with my published $100B valuation.

  • If a company with Uber’s scale and reach can get real traction in the driverless race then $90B will look like the loose change you leave in the dashboard...

  • IPO valuations are like candy corn at Halloween. Too large in number and nobody grabs for them. $90B is less than it’s worth!

  • What are Uber’s assets? You can’t own people and they don’t own the cars. They might have an office somewhere and a few phones. Sure they have created a paradigm shift but it’s not patent protected. Given the low cost of entry they can expect predatory pricing from an influx of competition. I’d say offer a buck...$3.50

  • The question is how long will investors be patient even w a savvy CEO like Dara K

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