Stewy

Stewy

Uber Stock Tanks

Sometimes markets show irrational exuberance. Other times the markets size something up for what it is and value it for what its worth. Unfortunately for Uber the markets weren’t exuberant. No they seemed rather petulant towards Uber’s IPO.

It might be because Uber has posted 10 years of losses and in just the last 3 months managed to burn through 1 Billion dollars. No that is not a “might be”, that is the primary reason investors turned a jaundiced eye at the scam known as Uber.

As NewsStew pointed out in its article from over a month ago: Lose Your Shirt Buy Uber! Uber has no path towards profitability that the company has bothered to outline.

Dara Khosrowshahi , CEO has tried to paint Uber as the next Amazon to deflect people from staring at the enormous pile of cash his company has set on fire. But that enormous bonfire has simply illuminated Uber’s inability to explain it’s path to profitability. He has personally stated that autonomous vehicles are not on the near horizon and as NewsStew pointed out in elaborate detail in the article addressed above, autonomous vehicles won’t bring enormous reductions in expenses anyways.

Other far flung hopes for profitability include Uber Freight and Uber Flying Taxis. Sounds promising. There is a problem when your core businesses are losing money and you are relying on technology that doesn’t even exist to put you in the black and apparently Wall Street agrees.

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