Shark Tank's Kevin O'Leary: Uber is not worth investing in because it has no cash flow
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- Опубліковано 13 тра 2019
- Ed Lee, a reporter with the New York Times, joins "Squawk Box" to discuss who might be to blame for the Uber valuation miss. Also at the table is Shark Tank's Kevin O'Leary and CNBC's Leslie Picker.
The little Charlie munger on the shoulder had me dead....
Hahahaha it took me too... The best coment i ever heard when it comes to quoting a person. I like Mr wonderfuls way of thinking.
RIP
Patrick M Like ,,"Mench on a Bench"
He's an idiot. Just a self promoting "celebrity".
It's a great quote 💯😂🤣😂
"No Cashflow just say no" Charly Munger
Great quote, *thanks Kevin!*
Wolf of Dubai Stocks Investing Channel *Charlie Munger
The only people winning are the people that are not getting killed by drunk driver's. Thanks UBER.
smartalk
Ppl still drive drunk smh
It's easier to call a cab than an Uber lol.
Is this sarcasm? I can't tell anymore
@@CultofThings Your brother John didn't use an UBER.
Wow. Investors are subsidizing 30% of uber/lyft fares.
That's why they are so cheap!
As a taxi driver that also does Lyft, there prices are insanely cheap. Now I get it. They are Walmart.
Come in to an area drop their prices to drive the competitors out of business, then they will raise their prices when there's no other competition.
The people will never see it coming.
The problem is people will see it and react. If uber were to raise prices too much people would drive themselves more or take the bus.
fr that would actually be really smart. Uber and Lyft are the biggest taxi companies so yeah it should work.
Lyft and uber are direct competitors so long as their some type of "competitor" the price will never truly Rise. Best example is Target Vs. Walmart.
These "analyst" are all guessing except Kevin. He flat out said, "if no cash flow, then say "no.""
The others are saying, "I think," "maybe," and "I don't know." Get rid of the bozos that are guessing.
Ultimately, everyone is guessing. Kevin's brilliant, though.
All analyst and people on t.v are talking heads no more no less just to confuse the masses.
I'll never invest in something that's not cash flow positive, makes no fucking sense
Let me know in 10 years?
@@kucingmiumiu854
Was that a question?
universalchiro nope. Just wait in 10 years
Uber raised 30+ rounds. Would you give money to a guy who spends all everytime and comes back for 30+ more times?
I do it every year. The guys name is Uncle Sam.
Janus 😂 😂
I brought this issue up in my local start-up FB group and they blocked my post.
Well said sooner or later you have to ask is this money becoming a greater investment or just more investing on hope?
Depends on what they are doing with that money. If you have access to the financials you can do some detective work and check if they are investing in fixed costs or variable costs. Global expansion is expensive, development is expensive, legal issues are expensive especially for a multinational corporation with no room for error. However in some cases you can deduce that those costs will eventually stop and the variable cost will be lower than the revenue and ultimately make a profit, since they are dominating the market. All it takes is a merger with lyft and a price jack of 20% and they are gravy. It will happen, first they ruin taxis by undercutting the market, then they jack up the price and roll in the dough.
Like good old Mr. Wonderful would say : this business "Is a Dog"
While everyone on that newscast saying they use Uber all the time
_"I'M OUT!!!" ... (camera pans over to Mark)_
No company wants to be profitable on the books lol I learned that in Silicon Valley
Thank Russ Hannerman for wanting "pre-revenue" as a pure play.
That's why they use duel booking
Why is that?
@@leveragelogic9008 type in "Russ hanneman revenue" on youtube and he explains it all, it's from silicon Valley
U guys know no business
Thats because 43 million is going to the ceo
Uber is definitely hiding cash, uber takes $220 per week average from me alone.
Dude buy a car
@@kunalsab7805 wtf he's not a taxi driver. Uber doesn't take money because they rent him a car, they take money because they provide the app that gives him a client to drive
Wow ur getting fucked hard bro, hope they used lube lol... And absolutely own ur car or else uber/Lyft is a gamble as a stable income
JeepZJ 101 UBER DOES NOT RENT OUT CARS... THERE’S A THIRD PARTY INVOLVED. SO EVERYWHERE YOU SEE RENT A CAR FROM UBER OR UBER XCHANGE... it’s not really UBER... Those are third party dealers or a regular dealer taking advantage of the market...
@@jahmenj it's possible he's spent 220 on riding with uber this week rather than giving rides and uber taking 220
Wait - so they sell below cost and investors subsidize this - like a Pyramid Scheme?
Wework is just a retail play
- these startups all wanna act like they are tech to justify silly valuations
MrBigT Wework has gone bankrupt
If it has no cash flow just say no. Its valueless....thank you That's what I've been saying. The only time you invest in a valueless company is a start up that has a credible plan towards profitability. Uber I'd a taxi dispatch service that thinks its something else .
Chuka Nweze with this attitude no one would have bought amazon
@@hanbulban3131 Amazon would have failed as a business but they figured out AWS
@D Blake yep exactly you are just taking a huge bet based on "why won't they figure it out?"
Exactly ... similar like wework, to implode.
Realistically shouldn’t Uber and lyft be charging way more per ride in order to be profitable?
Jeo Jetson that’s when people would rather drive their own car and use the public transportation. They can’t win.
Jeo Jetson if they change way more per ride, they would be more expensive to ride than a taxi and their business dies a natural death.
MS MS in Las Vegas taxis charge still a lot more than Uber and Lyft so I think personally they have some wiggle room to increase fare pricing
Correct. However that wouldnt be ideal for us consumers.
Xavier Chua it would be ideal still cause there is plenty of wiggle room before meeting taxi prices
Uber and Lyft: lets take a bunch of debt and buy and bankrupt the taxi industry and make the homeless Uber drivers pay for your cheaper ride. Lol
Frost shut up 💯
But its the "innovation" we need, as conservatives so desperately love to bring up
The taxi industry is a monopoly in cities and if you listened investors are subsidizing the rides
"If it has no cash flow, just say no." It's so simple but people who invest tend to forget about this.
Kevin is an idiot. Many of the best performing stocks of the last 2 decades had little to no cash flow for years.
labtechtech Kevin and Charlie are idiots ?
Lol i just wipe my screen. i think you know why
The Basics...
Ubers volatility makes day trading a great idea.
Incorporating into a fund portfolio is unwise... But retail trading it's a good buy
Never trust anyone who says they’re right 100% of the time because they are wrong about that statement.
He saying Its like when he's right he'sright, when he's wrong he could been right, so he still right cause he coulda been wrong, you know, and he maybe sorry cause he could be wrong right now, he could be wrong, but if he's right... He's right.
Context is everything.
🔴 "TAKE IT BEHIND A BARN AND SHOOT IT".
😂😂😂
As someone who drove for uber right out of college, i must say, they will never make it, because they literally rip off their drivers. I once picked up a guy and dropped him off and uber never paid me for it because the jerk called uber and said he was not satisfied with the service. Yes uber is allowed to do that, free riders have figured out ways to rip off drivers and ride free, come to find out the jerk was doing it the whole time. In essence i paid for the guy's trip, uber did not pay me a cent. A company who refuses to pay its workers for the work performed will never survive.
Sam Chacko im sure that something else eas going on, if you took the guy to the place and they dont pay you... hey go to court...
@@prolygamer2947 i should have, but when i can barely pay my bills, who's gonna do that. Also i don't think you believe me, but when i talked to a fellow uber driver a few months later, he told me he jsut emails uber to explain what happened and they quickly pay him. But by default, uber always sides with the passenger. So this is common practice, if a customer is not satisfied with their ride "experience" uber will send you an email saying they've refunded the customer. Now instead of wasting time trying to take them to court, i just learned to not to fall into traps again and landed better jobs. Somebody's always gonna rip you off in life, and you can't waste your life worrying over why you were ripped off. Just realize it wasn't meant for you
And move on to greater things.
Finally a common sense perspective on all this unicorn crap
Uber has a high usage and a low value retention with little or no customer loyalty, basically it can be considered a utility with no monopoly.........
It would take Tesla a week to steal Uber's market share when self driving cars become mainstream.
@@Z3N1T4 longer than a week but I get your point
No “customer loyalty” ??????? There’s only one other competitor. What are you talking about? If you want to get a ride ANYWHERE there are only 3 choices. Uber / Lyft / bus. That’s it.
@@abossman13 or your own car
John Doe I said “get a ride”. Not drive your car.
Should've said that to Chris Sacca while he was sitting beside him in the Shark Tank.
He made a killing because he got in pre ipo. Iirc he put in 300k at roughly 10 million valuation. Its the later investors that will be wiped out by this ponzi scheme.
They deserve no cash flow when they deny it to drivers who make there entire scheme possible. really stupid model unless you are a top executive. They get millions, win or lose. What a joke this country has become.
Sad but true... Let's see how long capitalism lasts
It's a good thing that it's entirely the driver's choice to drive for Uber.
@@carloscasanova2759 simplistic view as Uber wiped out the livelihoods of a lot of cab drivers who may have been forced. Your notion of "choice" neglects systemic issues.
@@gtcstorm40 Uber is not a monopoly. Lyft and other rideshares exist as well. It wasn't a matter of systematic eradication but rather the natural progression of innovation. If Uber didn't exist, another app-based ride share company would have appeared in its place. It was bound to happen with our constantly evolving, digitally integrated society.
At the end of the day, Uber driver do so under their own discretion. They can go to Lyft or start up their own taxi service, or just discontinue using the app if they are unhappy; but the demand for rides home after a crazy night at the bar isn't dwindling any time soon, so I don't see the supply going anywhere either.
@@carloscasanova2759 No need for a private corporation to have such a grip on transportation. Blockchain can be implemented to remove this middleman, looking forward to it. By the way, Uber and Lyft surely hope to monopolize transportation. They will use any muscle they have to make purchasing a car more difficult going forward.
Except berkshire tried to invest in uber lol
"If it doesn't have cash flow, just say NO." I like the rhyme and trust Mr Wonderful 🌟
You Asian cutie, wish I can kiss your Lil fish :)
except Kevin is not that good at making investments
Amazon didn't make any money starting out so no cash flow isn't the full story of what can happen.
@@GenEmperor talking uber, unless the cars will drive themselves eventually, highly doubtable with all the accidents
UBER, pump and dump ipo classic.
You're right @Nez R. He mean the employees and early investors will sell as soon as they are allowed and dump the company.
Casi Epico yeah def not a pump and dump I only made around 2000 dollars by buying at around 36 and selling at around 444
Casi Epico it is a pump and dump...they inflated their market value to an absurd level which set the initial trading price higher than it should’ve been...everyone knew Uber wasn’t worth 75 billion...
It’s a pump and dump for early investors and founders who had stock before the ipo. Even when it dropped they can still sell and make a profit
great idea + greedy management = revolutionary ponsi scheme. oh btw, did you hear tesla coming out with their own uber? exactly.
I get the feeling that Kevin is into BDSM.
Idk. His aura is positive
@@IScreenshotNFTs So is mine and I'm into it.
I bet a lot of people would be willing to go on their knees and call him “Daddy Wonderful”
@@mechadoggy I know I would.
Kevin Zhou like Chuck Rhodes
It's the same with McDonalds, they make no money with prices that low. They own all the restaurant buildings and they lease them out to franchise.
Same thing? McDonalds and its franchisees are highly profitable.
Justin what are you on about? McDonald’s is really expensive.
Uber’s going for the long haul and are waiting for all driverless cars to make money
GMan5090 might want to reconsider that answer
@GMan5090 - you expect to only live another few years?
@@joshuaaguilera6864 Honest question.. how many years do you think it will take for people to have the ability to buy affordable self driven cars
@GMan5090 The internet didn't really click until 20 years ago. Would you have imagined everything that we have today as a result of that back in the mid-late 90's?
With driverless cars, it will probably take YEARS for the policy makers to come up with laws and regulations. Driverless taxis probably won't be ubiquitous for another decade or so
What is Uber and Lyft's overhead costs exactly?? Aren't they a pretty self sufficient running company
Tesla will come out with robo taxis uber will be worthless
When the Tesla Network goes live, the game-overness of the situation will become clearer to everyone.
ofer greenberg Earnings call 7/31
Until Uber drivers start taking Telsas for rides and start cutting seats , leaving shit on the floor. Pissing on the carpet. Then most Tesla owners would think twice about putting their cars out as taxis.
Can someone please explain me the 30% part?
Only an uneducated unintelligent person would buy these rideshare stocks. The drivers are continuously being ripped off & having unrealistic percentages taken away from their earnings by an algorithm instead of a set percentage. It's driving them away & making the system look bad to many riders globally as well. BOYCOTTED until they address & change these issues. We as consumers need to make these companies realize we are not all idiots.
Your assuming Self Driving won't replace all of their drivers in a few years. This is why anyone invests in them. By the time self driving is ready, they will already have a large customer base. Their whole model depends on not using human drivers.
I hate uber as much as the next person, but you have to look at what their goal is... I don't think uber is going anywhere anytime soon.
Rocket Boards
They’re done. Someone larger will dominate this space.
Waymo (google) & Tesla will rule with more cash 💰💰💰💰
Uber & Lyft will be gone.
@@sfrealestatedealmaker6001 Lyft and uber have a lot of brand loyalty. GL to google. Tesla will probably acquire lyft or uber.
Harrison Engle
Tesla is already a known brand. They don’t need to buy anyone.
Uber is hated by many. Lyft has partnered with GM. Uber and Lyft will be remembered as the trailblazers, but not the kings.
GMan5090
I have. But why would they?
The subsidy is far greater than 30% in London. All taxi trades globally have a finite amount of work.
Cuban is an Uber investor, I would love to hear Cuban and O’Leary go back and forth on this.
I love how people call him Mr Wonderful even outside of shark tank
A Void is a better description than a Mote. Lol
The cash flow is only at the executive level...didnt the ceo get a 43 million dollar salary ?? How these people sleep at night is beyond me.
Uber has been losing money for the past years consecutively. Why would anyone invest in anything like that?
Is the host wearing eyeliner
Plenty of companies don’t have cash flow. Tesla, Lyft, beyond meat, General electric, Amazon (at one point), you see people still think they are great and think ahead.
Beyond meat is going to crash massively. The company has NO chance of growing to their valuation.
And I find it absolutely hilarious how you cherry pick Amazon and GE. For every Amazon and GE there's 99.9% of other companies that were in similar situations that went completely bankrupt OR never lived up to the hype and crashed massively. Tesla, Lyft, Uber, and definitely beyond meat won't live anything close to the hype. Beyond meat is trading at 300 Price to sales ratio. That's INSANE. Bubbles all over.
Ken short
@@Kennan_Davis beyond meat and Tesla can go profitable within 5 years if they play their cards right. GE and Amazon are everywhere. If you think they can't be profitable there's something wrong. GE has been profitable before and the only place Amazon isn't profitable is retail. Everywhere else they're making huge profits.
Right. We just don’t know which one could be the amazon. The likelihood of ALL these mentioned succeeding in the same way as amazon, is near 0.
One other in your list? Sure.
They are bankrupting the drivers. It's a scam for working class people.
Sad but kinda true
Uber is a type of job you do part time not as your main source of income
@@kingc1198 it was never a full time job you're right. Now it doesn't even make sense as that. I driven 4 years I know.
Shoutout to the guy in the back at 1:28 throwing the garbage around
KEVIN O'LEARY IS THE SMARTEST INVESTOR..............AND THE BEST SHARK...................I HAVE LEARNED A LOT FROM HIM.
The samething that made them grow so fast is now whats hurting them....
that was aid about AMAZON too but he s right for sure Uber/Lift is not an investment but rather a subsidization
As a passenger in a UBER or LYFT vehicle, are you covered by the driver's insurance? In a taxi, you are suppose to be covered by the driver's insurance.
they must defraud drivers and investors so they can continue to operate
5:00. Omg that’s hilarious... she destroyed the argument _for_ Uber in a few seconds. Haha.
question. Is there a difference between cash flow and being profitable??
kwang-won Chung Yeah - profit and loss are reported on an accrual basis and account for non-cash expenses (namely depreciation which is a manager’s most flexible tool to smooth or otherwise manipulate earnings). Net operating cash flow is less subject to manager discretion as it is just the cash inflows from operating activities less the cash outflows. A company can report positive earnings while still being cash flow negative and vice versa.
Alert: its illegal to hire the 4 hire cars at airports unless u go through ubers app ,but soon it will be legal 2 hire those cars direct without the uber app .stock collapse .hellooooo
Thank you for the education. Well little Charlie is saying, what type of hiring process does Uber do beside the criminal background check they performing so the riders will feel safe, I believe Uber will face bigger problem concerning a real public safety the government and the news media should be focusing on that issue.
It's built on exploitation. Uber and Lyft drivers are the happiest people ever.
EX DUECE then stop driving Uber/Lyft. Problem solved
@@99vikke You one stupid Russian you.
Hahaha hahaha Uber drivers are the happiest hahaha what a joke
he didn't sate he drives for them....learn how to read buddy
No one is forcing Uber/Lyft drivers to drive. Why don’t they just stop instead of whining the whole time
Guys guys you dont understand we are the beneficiaries here. They have ni cash flows caz we are paying them peanuts which is enough for maintaiance charges.
Holy crap that table is trippy.
It was cheaper in the earlier days only (at least here in India). Now they are horribly costly (even 3 times or 4 times) during most of the day.
nov 21 2019 $28 looks like time to get .
Neither Uber or Lyft take care of their "employees". They don't pay enough to make folks wanna stick with the job. They don't offer any benefits whatsoever. Furthermore, the more you drive, the higher the chance that you'll get into an accident; then, once you get into an accident, your income is cut off and neither Uber or Lyft will make sure you get back on the road in a timely manner . . . they'll just pump out advertising and get more drivers. I think both companies are destined to fail...
Munger/Buffett did try to invest in Uber pre IPO but didn't due to valuation.
Yep, they changed their minds and decided to go all in on Bitcoin instead
🤣
Did he just compare toys.com to uber!! Are we ever really going to stop using Uber?
Dave 1977 Yes, because computers provided a more interactive way to type. How much more disruption can hailing a cab undergo at this point, teleporting probably.
If they increase the price of an Uber ride to the point where they break even.... Yeah, we will stop taking Uber. Same as Netflix needs to charge 100usd per month to break even. No-one will pay that.
I can make a popular business that gives people 5 dollars after they give me 1, surviving on 3rd parties to keep giving me money. It'll be really popular until it collapses.
@Dave 1977 1. You're assuming they'll hit a billion. More and more competitors are entering the fray and making their own service 2. You're assuming every dollar goes into the company. 3. They're losing money hand over fist. The numbers currently make no sense
Good for you, you spun a roulette wheel
I'll use waymo when its available over uber.
The video I watched before this was of "Elizabeth Theron's", And then this video turns up on top. Ok I confirmed personally that google reads even voice to make suggestion.
I wish we could go back to when everything was taxi and limo. Back then those cars contributed to the feel of a place
I understand what O'Leary is saying because cash flow is indicative of return on assets or equity which gives you a multiple to multiply out into the future. What is happening is the companies are building a new market which is still a gamble and there is no indication of profitability very soon. However, I do believe ridesharing is the future and as this industry consolidates Uber and lift will be worth way more. Cost structure and incentive system will be the there biggest problem in regards to drivers. This can be solved with autonomous systems.
Honestly, i'v privately invested into businesses. Investors are never happy when multiple rounds are raised because they end up becoming diluted. The fact that they have privately raised 30 rounds, with no cash flow and now they have gone public to raise even more money are major red flags. As an investor I would be up in arms. How do you possibly raise 30 rounds, burn through it all and have no cash flow ?. I learned this early on as a personal checklist, dividends and cash flow are the basics of all investing.
The herd is coming: XRP THE STANDARD, IOTA, VeChain, ..... Short Fiat and LOOOOONG DIGITAL ASSETS
I suppose he would've said the same thing about Amazon $AMZN back in 2000?
Amazon had a vision... And Jeff..
this is exactly what i was thinking listening to his explanation. he might have a point, but he's failing to articulate it in a way that makes sense to the experienced. this is a shark tank type of clip for those who are entry level to understaning markets.
4:24 Were you guys never taught in elementary school to wait your turn to talk??
Jaidan Craig it’s so fucking cringy lol let the guy finish
I don't get it, why does Uber not have cash flow? All businesses including declining businesses have cash flow. It goes in (profits) and out (expenses) of the business. Somebody explain it to me.
what kevin means is their cash flow is negative, because it doesn't make any profit
@@Andreas-nt5tc That's what I suspected. Thanks!
Grim Reaper will try to keep it simple, but it’s a few paragraphs as the process involves several steps/concepts.
For starters... You’ve got the basic equation wrong. “Goes in” is Sales, not profit. “Goes out” is expenses, yes. “Profits” is the difference between the two (as long as Sales > Expenses; if not, it’s “Losses”).
To calculate Free Cash Flow, you start from profitability, but then works backwards. You add back taxes paid to gov’t and interest paid to lenders (“EBIT” earnings before interest and tax). Then add back Depreciation & Amortization (non-cash expenses... think of your computer losing value as it gets older; as its value approaches zero, this is an expense, but you’re not shelling out any cash day by day for it). This is EBITDA.
Then you consider other aspects that affect cash. You see, you assume Sales = Cash In. But about when something was sold on credit? You made the sale but the cheque/wire haven’t cleared yet. Same phenomenon happens with expenses (the business purchased something on 90 day credit). There’s a finance term for this but all you need to know is the concept. Sales does not always equal cash in, and expenses don’t always equal cash out.
Then, finally, you consider capital investments. When the business invests in a new fleet of cars, or launches a new sub-business within Uber. This investment is an upfront use of cash (a cash outflow).
So you start the journey with earnings (or losses) and you modify that number with all these factors. You end up with Free Cash Flow, and this is what Warren Buffett, Charlie Munger and these other investors use as a fundamental measure of a company’s attractiveness as an investment.
If a business isn’t producing free cash flow today, you’d consider future scenarios where it eventually produces free cash flow. If it never does, it will never have fundamental value for an investor; the value of its shares depends on the supply of greater fools who are willing to buy it from you at a higher price.
What about Amazon?
Uber's ride share sector is profitable.. Look it up
lol😂the company burns through billions of dollars of cash and has bet all it's money on customer acquisition and how they are going to cash out is unknown.
Time for Uber / Lyft to stop being the Walmart of tech transportation!!!
Time to raise the price for the ride to a point where the drivers and the company can ACTUALLY make a “profit!”
Now that they are public, they have to focus on profitability!
$1.89 a mile and .32 a min. With Uber making a min $7 fee to the client for insurance and platform fee. Then they can take 20% of the fare....
Whoa there Marcus, that actually sounds like a business plan. Not sure the folks at Uber do those.
Still a better investment than Blue Apron lmao Blue Apron has yet to have a year with a positive value for cash from operating activities. Mr. Wonderful just straight up lied 😂
As always Mr wonderful is straight on
Get rid of ubereats..its a profitless business model.
I’m a former Uber driver and it’s disappointing how there are driver (usually former taxi drivers) complain about low wages, sick leave, annual leave and other entitlements. For me it was a great stop gap to do during my gardening leave. I met great people, got some extra business out of it and made money while doing it. Uber is one of the worlds most powerful brands and like their driver based product will disrupt with their driverless products. The law didn’t stop the first it won’t stop the second.
VCs are playing a different game. They have a set investment timeframe while the market does not. They also have various structures and protections in place which can drive their valuations higher than those common stocks offered to the public
Kevin and Charlie are my hero’s. Screw celebs and other clowns. I love them.
I will invest in Uber solely for Uber Eats and Uber Freight.
I've made a ton of money for uber as a driver. They didn't do anything that would cost them money and that's why I dont understand how they lose money.
Uber as a company is bigger than rideshare. They are into freight, food delivery, air taxis, scooters, bikes, busses, tech. They have their hands in too much which is why they are losing tons of money and not profitable. Also its costing them 100s of millions in court cost and to fight legislation on a city by city level. But as far as uber's rideshare platform....it will never be profitable for them. The reason taxis cost so much is because its neccessary to charge those rates to make a profit for each car. Ubers interest in autonomous tech has very little to do with its car service and more to do with its freight service. Fyi....uber freight headquarters is in Chicago because Chicago is currently the #1 freight hub city. If it moves across the country it comes through chicago.
with electric scooters and bike now, Uber & Lyft is basically putting all their hopes into self-driving cars lol
btw that guy in the middle seems dumb af, 3-4 years? Waymo shows up? Uber and Lyft have been working on self-driving cars for awhile now.. probably better than Waymo
Why does Uber even need so much money to operate considering they don't really do much?
I never saw Uber in positive light, the recent negative headlines with Uber/lyft drivers didn’t help and it’s also affected their value....
Uber is learning the hard way - at end of the day, it’s about the drivers, Stupid. Burned far too much money on the app toy and politics of running this than concentrating on their core customer - THE DRIVER.
Gene Dexter
Uber will be a case study for future entrepreneurs on how to sabotage your own business BY PISSING OFF your own supply side.
Why treat your drivers like trash?
🔥 No drivers, no Uber. 🔥
How does he know it has no cash flow? Where is he getting that info?
"That's so fetch" girl?
Uber and Lyft ate taking 50% from the drivers what else do you want whose fault is it.
Ride share is like airlines. If money is to be made, there will be competitors who will cut fares to gain market share. This market dynamic will always keep profits low.
Planned live discussion, aim to drop the value of the stock. Then 'they' will buy a lots of those low price stocks and sell them when price increase.
Uber: We are in the Endgame now !
Replace the name with any other company... , now, convince people to “invest” in a company that’s lost money (nett) for a decade.
I didn't invest in Uber but those Fin Dinosaurs are clueless. Expecting Uber and Tesla to be main players in Travel industries for decades..
Invest in Tesla instead. They are supposed to have a driverless fleet of "Ubers" next year.
Tesla going down as soon as big auto makers switch to electric and can produce cars quicker.
@@JokiBroki I don't think so. They are so far behind on their battery technology and driverless tech that I don't see how anyone could catch up to Tesla now. The will have a huge head start.
@@aribbonatatime I agree but tesla isnt the only one in the game there are many others maybe not as advanced as tesla now but getting there. Problem with tesla is their production, they just cant make cars quick enough.
Not only that...no direction...consistency...unhappy drivers....internal issues
Heard the same arguments about Amazon about 20 years ago.
oceannavagator Sure but in fairness, we also heard the same thing about all the other internet stocks in 99 and Amazon is literally the only one that survived that correction
@@billyroberts4351 Yeah, except for Google, Facebook and Yahoo. The point I was making is that whether or not you can figure out how a company can make money, you should look at the concept of their business. Uber has put cab companies on notice in the same way that Amazon put book stores on notice. The guy being interviewed even admitted that he uses Uber. Just because he can't figure out how Uber will grow doesn't mean it won't. They have business even from people who talk bad about them.
oceannavagator True about Yahoo I forgot about that - but Facebook wasn’t even founded until 2004 and google IPO wasn’t until 2004. Whether a company is good for consumers doesn’t mean it will provide a sustainable return for investors. The point he made about that was that prices for consumers are so low because existing investors are effectively subsidising that by burning through equity. Still the overall point he is making is not that Uber has no upside, it’s simply that it barely qualifies as an investment while cash flow negative - it’s highly speculative in that condition. And the example you cited supports that point given the sheer value destroyed in that 99-01 market, concentrated in businesses trading at obscene multiples promising inordinate earnings growth. Not commenting on whether Uber is worthwhile for an investor, just saying that you can’t just point out the success of Amazon saying it faces similar criticism. That comparison has no merit if you don’t appreciate what happened to rest of the market.
oceannavagator Look ultimately I think anyone would be kidding themselves to think they can confidently value Uber’s business right now. Time may tell that it’s priced accurately, or even cheaply. But that’s the whole point - until it makes anything you can’t slap a multiple on it which makes things tricky. You could make money out of Uber, but for anyone sensibly risk averse it might not be worth the headache incurred waiting it out until then.
All of these dummies are making me bullish on Uber
Money talks, make your position
@@henryw31 scaling in now 👍
The truth, they are idiots. People who listen to them lose out on tremendous opportunities to make big money
I heard the exact same thing months ago, he’s just re-posting this guy.....
Valuations are not based on historical profitability or cash flow, but on future. Amazon was also in the same condition yet they became very cash positive. These things are not black and white as all depends on the management of those companies.
“I’LL BUY THAT FOR A $1!!!
the business is needed but is not profitable even the revenue is HUGE.so is more like service by government.service that needed by lot of people but not make business sense because is not profitable since need keep on subsidize. so its hard to make as a good investment.