Uber IPO: Is Uber really worth $120bn? – The Wall Street Journal
DUBLIN – I'm on record as not really believing in Uber. But what do I know? Investment banks are reportedly lining up to value the ride-hailing company at $120 billion – more than General Motors, Ford, and Fiat Chrysler combined. Now, the figures that investment banks give in their IPO proposals are notoriously optimistic (they are, after all, making a bid for the lucrative business of handling said IPO). Nevertheless, that's a stellar valuation, much higher than the valuation it achieved in its last capital raising this year ($76bn). The IPO is being planned for the second half of next year, and a lot could happen between then and now. Nevertheless, there has been some rotation out of tech/growth stocks, especially those that have a more tenuous history of profitability. Uber is not profitable and doesn't expect to be profitable until 2021 or so. The company is also burning a lot of cash discounting fares and investing in technologies like self-driving cars. In addition, it faces stiff competition from around the world, and has been pushed out of a number of markets, including China, by strong domestic competitors. Definitely one to watch. – Felicity Duncan
By Liz Hoffman, Greg Bensinger and Maureen Farrell
(The Wall Street Journal) Uber Technologies Inc. recently received proposals from Wall Street banks valuing the ride-hailing company at as much as $120 billion in an initial public offering that could take place early next year, according to people familiar with the matter.
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