Uber will reportedly file for IPO in April
The ridesharing company is reportedly filing for an IPO next month.
Uber has reportedly filed for an initial public offering (IPO). The ridesharing company’s IPO will likely launch in April.
How much would an Uber IPO be worth?
Uber's IPO would be the top unicorn IPO worth more than $1 billion. The IPO has been rumoured to be worth $120 billion. Uber’s 2018 revenue was $11.3 billion, a number that would justify such a high valuation. The stock will not only benefit shareholders, but could also help the longtime drivers.
The corporation’s stock could compete with rival Left's $100 million IPO. Though Uber filed for an IPO after Lyft, Uber can have an advantage over Lyft with its stock offering. Uber’s eagerly awaited shares could also benefit their long-term drivers. Both carsharing companies are reportedly offering drivers access to their shares.
Will an Uber IPO have long-lasting success?
While Uber also had high revenue, the company has reported $1 billion in losses. The business is spending heavily on its other transportation, like self-driving cars and bike rentals. The corporation’s also spending on its Uber Eats ventures. Uber is also trying to overcome its sexist past with accusations of sexual harassment that dogged the corporation over the past two years. All these negative factors could weigh on investors’ minds as the contemplate buying Uber stock.
David Brophy, professor of finance at the University of Michigan, said that Uber needs to prove that its valuation is worth all the debt the corporation is incurring now.
‘Uber needs to show it can control costs and can make money — basically provide a strong argument that its business model is not broken, and that it can achieve and sustain profitability despite issues with drivers, customers and politicians,’ said Brophy.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Live prices on most popular markets