Uber’s lockup expires and we still don’t know what investors think

FireShot Capture 038 - Calvin and Hobbes by Bill Watterson for November 06, 2019 - GoComics_ - www.gocomics.com
Fig. 1. Screenshot of comic from 1989 by Bill Waterson.


Uber

The bottom line here is that this is simply not, cannot be, and never will be a sustainable business model.[1] The question, which remains even with today’s sell-off,[2] is to what extent investors will continue to believe the contrary.

Tom McKay, “Surprising No One, Uber Continues to Hemorrhage Cash,” Gizmodo, November 4, 2019, https://gizmodo.com/surprising-no-one-uber-continues-to-hemorrhage-cash-1839625062

Heather Somerville, “Uber Booked Another Quarterly Loss as Revenue Climbed,” Wall Street Journal, November 4, 2019, https://www.wsj.com/articles/uber-booked-another-quarterly-loss-as-revenue-climbed-11572901549

Megan McArdle, “Uber can’t keep bleeding money, can it? It apparently thinks it can,” Washington Post, November 5, 2019, https://www.washingtonpost.com/opinions/uber-cant-keep-bleeding-money-can-it-it-apparently-thinks-it-can/2019/11/05/4aa4fec0-000b-11ea-8501-2a7123a38c58_story.html

Sebastian Herrera and Heather Somerville, “Uber Shares Hit New Low as Post-IPO Lockup Expires,” Wall Street Journal, November 6, 2019, https://www.wsj.com/articles/uber-shares-face-more-pressure-as-post-ipo-lockup-is-set-to-expire-11573041602″

Erik Sherman, “Yesterday, Shareholders Bailed on Uber. Today, Insiders Got Their Chance,” Fortune, November 6, 2019, https://fortune.com/2019/11/06/uber-stock-insiders-growth-profit-lockup-period/


Pacific Gas and Electric

Rebecca Smith, “California Mayors Join Campaign to Buy Out PG&E,” Wall Street Journal, November 5, 2019, https://www.wsj.com/articles/california-mayors-join-campaign-to-make-pg-e-a-cooperative-11572955201


Ageism


Bhaskar Sunkara, “Why it’s time to ditch the ‘ok boomer’ meme,” Guardian, November 6, 2019, https://www.theguardian.com/commentisfree/2019/nov/06/ok-boomer-meme-older-generations


  1. [1]Rich Alton, “Basic economics means Uber and Lyft can’t rely on driverless cars to become profitable,” MarketWatch, August 12, 2019, https://www.marketwatch.com/story/basic-economics-means-uber-and-lyft-cant-rely-on-driverless-cars-to-become-profitable-2019-08-12; Richard Durant, “Uber’s Profitability Problem Is Structural,” Seeking Alpha, August 21, 2019, https://seekingalpha.com/article/4287055-ubers-profitability-problem-structural
  2. [2]Sebastian Herrera and Heather Somerville, “Uber Shares Hit New Low as Post-IPO Lockup Expires,” Wall Street Journal, November 6, 2019, https://www.wsj.com/articles/uber-shares-face-more-pressure-as-post-ipo-lockup-is-set-to-expire-11573041602″; Erik Sherman, “Yesterday, Shareholders Bailed on Uber. Today, Insiders Got Their Chance,” Fortune, November 6, 2019, https://fortune.com/2019/11/06/uber-stock-insiders-growth-profit-lockup-period/

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