Uber has recipes to avoid delivery indigestion 9 May 2019 The ride-hailing giant hopes a $795 bln global takeout market can offset slowing growth in its core business. For now, generous incentives are gobbling profit. But the likes of Europe's Takeaway.com suggest there are ingredients for success, starting with market dominance.
Uber’s losses are nothing like young Amazon’s 8 May 2019 Some of the ride-hailing app’s boosters push a comparison with the e-commerce giant’s history: hefty losses now lay the foundation for a future profit juggernaut. That’s the wrong financial statement to look at, though. Amazon’s success and Uber’s trouble are rooted in cash flow.
Siemens self-medicates with weak activist tonic 8 May 2019 The $96 bln industrial giant’s plan to slim down by spinning off its power business looks designed to pre-empt a shareholder rebellion. But the new entity’s complex structure and its odd bundle of clean and dirty energy assets could still draw the attention of a pushy investor.
AB InBev’s debt belly needs more than fizzy growth 7 May 2019 Pricier beer helped the brewer’s first-quarter sales rise faster than expected. Yet AB InBev still has an unsightly debt pile and is battling falling volumes in key regions. An IPO of its Asian operations sooner rather than later would help investors breathe more easily.
China’s Luckin Coffee roasts a rich IPO 7 May 2019 The chain is seeking to raise up to $590 mln as it races to overtake Starbucks. Luckin is growing fast, but burning cash to do so. Although its strategy diverges from that of its Seattle rival, on a comparative revenue-per-store basis the implied $4 bln valuation is high.
Vision Fund IPO could self-disrupt 3 May 2019 SoftBank may be mulling a float of the $100 bln tech fund. That suggests rich Gulf backers aren’t a shoo-in for a second iteration. While going public would diversify ownership, the entity might trade at a big discount. That would turn off both public and existing investors.
Beyond Meat IPO flips into FOMO territory 2 May 2019 The plant-based burger firm’s stock almost tripled on its market debut. The desire for food that’s tasty, green and ethical is real, and investors are clamoring for a bite. But such big first-day pops are often driven by a fear of missing out that longer-term returns cannot sate.
Beyond Meat’s green IPO could still burn buyers 30 Apr 2019 The plant-based burger maker is seeking a $1.5 bln valuation after raising its IPO target price by 20 pct. The eco-friendly business has developed a following among consumers. But with former investor Tyson entering the alternative-meat space, investors may have tastier options.
Slack needs a channel for valuation skeptics 29 Apr 2019 The email disruptor’s revenue jumped 82 pct in the year to January. But losses held steady, leaving profit far away. Private trading in March may imply a price tag of $15 bln or so and Slack could expect even more from its direct listing. Investors may want to chat before buying.
Buyers beware Uber’s slower growth, bigger losses 26 Apr 2019 The ride-hailing app wants an IPO market value of up to $84 bln before dilution, reflecting the share-price slide of rival Lyft. Uber also lost $1 bln in the first quarter, on a top line only 20 pct up on last year. The big question: whether its heavy investment ever pays off.
PayPal’s ride-share with Uber may be bumpy 26 Apr 2019 The $129 billion payments company could pick up some decent new business by investing $500 million in the ride-hailing firm’s IPO. But Uber is a riskier bet than other firms PayPal has taken stakes in. CEO Dan Schulman could be in for an uncomfortable journey.
Invisible India exposes Uber’s growth dilemma 25 Apr 2019 The ride-hailing firm has retreated from China but the IPO prospectus mentions it twice as much as India. Uber has tried to check out of local food delivery. Now a top executive’s exit suggests the cash-sapping subcontinent’s future is far from certain.
Alpine stability helps Swiss scale IPO peak 23 Apr 2019 Train maker Stadler and medical devices group Medacta raised a combined $1.9 bln in Zurich listings this month, defying a European market becalmed by Brexit and trade woes. Relative stock market strength is fuelling the rush. As valuations flatten, other venues will catch up.
China’s wannabe Starbucks brews a muddy IPO 23 Apr 2019 Luckin Coffee is rushing to deliver a New York listing before its business plan leaks. Its prospectus argues fair value doubled in three months, and an April round put the company’s worth at nearly $3 bln. Its money-losing model and murky corporate structure leave a bitter taste.
Pinterest and Zoom indulge in IPO micro-aggression 18 Apr 2019 Both tech companies sold shares for more than underwriters previously indicated. True, market debuts give little indication of long-term success. When insiders already hold supervoting shares, though, leaving a bit less on the table is a gentle reminder of who calls the shots.
Uber’s wordy risk factors mix tedium and terror 16 Apr 2019 Tech firms seeking to go public have steadily ramped up the caveats for would-be investors. The ride-hailing app’s IPO has 30 times as many words of warning as Microsoft did in 1986. Lawyers add more boilerplate over time, but more complex, wobblier firms are also floating.
IPOs will remain endangered species in Europe 16 Apr 2019 Despite a rebound in equity markets in the first quarter, the number of listings collapsed year-on-year. Bankers of an optimistic nature are focusing on a recent uptick in activity. That’s not enough to offset a lengthy list of reasons to keep sitting on the sidelines.
Google steers Uber and Lyft from the back seat 15 Apr 2019 The search giant’s parent Alphabet has multiplied its investment in the two ride-hailing apps, and reaped $1 bln in maps and marketing spend. Uber and Lyft’s rivalry will keep filling Google’s tank with ad dollars, even as Alphabet’s self-driving tech threatens their existence.
Uber’s ambitions appear too high and wide 12 Apr 2019 The ride-hailing app says its target market for mobility, meal delivery and freight is worth $4.5 trln, or 5 pct of global GDP. Yet that potential attracts fierce competition, which explains the company’s massive losses and stalling growth. Uber’s reach may exceed its grasp.
A $100 bln price tag still in Uber’s driving range 11 Apr 2019 The ride-hailing app’s mega-IPO could value it at nine times revenue. That’s less than the multiple Lyft achieved, but its stock has tanked. Both firms are burning cash and face an uncertain road to profitability. Uber’s diversification may help it survive the long journey.