Vanity Fair: “UBER’S COLOSSAL I.P.O. FLOP MAY BE THE WORST EVER ON WALL STREET”By admin_45 in IN THE NEWS
Excerpt from Vanity Fair quoting DataTrek's Nick Colas:
..."Still, “the unvarnished truth is that these declines represent a fundamental disconnect between public and private valuations,” as Nicholas Colas, co-founder of DataTrek Research, wrote in a note to clients on Monday. The timing of Uber’s I.P.O. may have been unfortunate, but the company is also unprofitable and faces several well-capitalized competitors, as well as the risk of mounting labor costs and slowing growth. (“We expect our operating expenses to increase significantly in the foreseeable future, and we may not achieve profitability,” the company warned in its I.P.O. filing last month.) And while some short-term profitability issues aren’t necessarily going to tank the stock, according to Colas, both Uber and Lyft are “dramatically short” when it comes to cash flow"...
Read the full article here on Vanity Fair!