Business Insider: “Uber is tanking after logging the biggest first-day dollar loss in US IPO history”

Excerpt from Business Insider quoting DataTrek’s Nick Colas:

…. “Uber’s IPO comes at a turbulent moment in the financial markets, as an escalation in the US-China trade war has fueled a fresh wave volatility that rocked markets last week and weighed on sentiment Monday morning. The uncertainty around US-China trade relations took a toll on Friday.

“While it might be easy to call out ‘market conditions’ for these failings, the unvarnished truth is that these declines represent a fundamental disconnect between public and private valuations,”  Nicholas Colas, co-founder of DataTrek Research, wrote in a note to clients on Monday about Uber and Lyft’s poor performances. 

While the market doesn’t necessarily “care” about newly public companies turning a profit, Colas said, it does want to see operating cash flow, of which Uber and Lyft are “dramatically short”….

You can read the full article here on Business Insider!

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