Uber’s dull thud may startle unicorn herd 10 May 2019 The ride-sharing service’s shares opened below its subdued IPO price, valuing the company at around $70 bln. Markets had a rocky week, but the lack of excitement for the biggest listing of a U.S. tech company since Facebook is a warning that investors are becoming more choosy.
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.
Lyft takes some gas out of Uber’s IPO 7 May 2019 The smaller ride-hailing app beat revenue estimates with its first post-listing results and burned less cash. But growth is slowing, making profit a more distant goal for the $17 bln firm. That, and a fresh wobble in the stock, flash a hazard light for its big rival’s offering.
Musk’s roundabout finance runs on short sellers 7 May 2019 The Tesla CEO reduced some pressure by raising $2.7 bln of capital. But he relied heavily on convertible bonds, a vehicle dominated by the very traders he despises. And ditching long-held financial goals for robo-taxis bolsters the bears’ case against his electric-car outfit.
Uber’s trucking is at best a very long haul 7 May 2019 The ride-hailing app’s freight unit, 3 pct of revenue in 2018, is a growth focus as it prepares its IPO. Connecting shippers to carriers has potential but there’s a driver shortage. Uber already offered incentives. As elsewhere at the firm, the costs of expansion could spiral.
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.
Hyundai Motor’s U-turn may stutter in South Korea 25 Apr 2019 The $29 bln automaker's first quarter sparkled, good news after a loss the previous period. New models revved sales despite a slowdown in China and U.S. safety issues. Worsening economic conditions in its home market, however, could put this turnaround into a spin.
At least Uber investors will have a say on losses 24 Apr 2019 The ride-hailing app touts a separate chair and CEO, one vote per share and annual director elections. Rival Lyft and image-search firm Pinterest by contrast have insiders with supervoting stock and staggered boards. All lose money but only Uber shareholders can push for change.
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.
Short hit pollutes China’s second-hand car lot 17 Apr 2019 Uxin’s stock lost a third of its value after a research firm accused the newly U.S.-listed auto outfit of fudging numbers. True or not, fumes around an industry backed by Tencent and big buyout names are becoming noxious. It’s reason to steer clear of rivals waiting to go public.
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.
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.
Delta climbs clear of rivals’ 737 MAX woes 10 Apr 2019 Selling more premium seats helped the $39 bln airline to a strong first quarter. With American, Southwest and even United constrained by the grounding of Boeing’s new jets, Delta’s Airbus fleet positions it nicely to take further advantage of a booming travel market.
Viewsroom: What’s driving Lyft’s valuation? 4 Apr 2019 The ride-hailing firm is worth $30 bln after its stock-market debut, even though its losses are growing. Shareholders are betting a shift to autonomous driving will steer it to a profit, but that may be a long way off. Plus: Saudi Aramco lets investors drill into its finances.
Swiss freight group gets pirate’s bounty from DSV 1 Apr 2019 The Danish logistics company is handing over shares worth $4.6 bln for Panalpina after a months-long spat involving activist Cevian and a charitable foundation. The price is too good to turn down. Expert acquirer DSV will have to beat its own track record to make the deal pay.
Lyft gives Uber a boost along the IPO road 29 Mar 2019 New investors eagerly hopped into the ride-sharing firm’s public listing, driving Lyft’s price up by some 20 pct. It bodes well for mega-rival Uber, which on a similar multiple would be worth over $150 bln. Turning fast growth into profit, though, remains a challenge for both.
Swine fever tests China’s transparency credentials 29 Mar 2019 Grains trader Cargill is the latest company to cite outbreaks of the highly contagious hog disease as a drag on business. It’s likely to fuel fears that the world's biggest pork producer may be under-reporting the issue. The taint adds to Beijing's fast-spreading problem.
Uber gets an IPO boost from Middle East deal 26 Mar 2019 The ride-hailing giant will pay $3 bln to acquire Dubai-based rival Careem. It shows the group, which is burning through $1 bln a year, can still spend to grow as it prepares to go public. Amid intense overseas competition, the move gives Uber one less thing to worry about.
Italian Silk Road gambit is a double-edged sword 15 Mar 2019 Marco Polo’s daring travels turned Venice into a wealthy gateway to China; 750 years on, Rome wants to rebuild that special bond through infrastructure deals. Improving ties with a key trading partner makes sense. The risk of leaning East is that Italy loses clout in the West.