Was the stock market of Lyft overrated

Uber IPOA risky bet on the future

The transport service provider Uber is listed on the New York Stock Exchange with deep red numbers. Last year, pre-tax losses of $ 1.85 billion were accumulated on the balance sheet. An estimated $ 100 billion worth of the company is a whopping sum.

"What I find exciting is how much overpriced the Uber will likely come out compared to conventional companies such as car rental companies or traditional travel companies. That seems to me to be at the top end," says Henrik Leber from the fund company Acatis.

Clear warning in the prospectus

The travel agent Booking.com, for example, brings "only" around 80 billion dollars to the scales, but earned almost five billion dollars before taxes last year. In contrast, Uber will probably not be able to post profits for a long time - the investment costs are too high to gain market share and drive global expansion. In the prospectus, Uber warns not only of a long dry spell, but also of the possibility of never coming into profitability.

"When I heard and read that this morning that it was pointed out that there is definitely the possibility of not making any money, I was a bit puzzled and asked myself, bold statement for such a big IPO," says the stock trader Stefan Scharfetter from Baader Bank. A bold statement that can be explained by the fact that such warnings can be found in many stock market prospectuses - they protect companies from possible later lawsuits if investors are not satisfied with the course of business, the company's profits or the share price. Twitter, Snap and Uber competitor Lyft had warned in a similar way when they went public.

Often a bitter disappointment follows

In any case, Uber is lagging behind its competitor Lyft with its IPO, which had already gone public at the end of March. The initial hype has now given way to disillusionment: Lyft shares have plummeted by around 30 percent since their stock market debut. What makes Lyft and Uber's temporary appeal to investors in the first place is their strong growth over the past few years. In 2018, the Uber Group's total revenue increased 42 percent. In the driving service business, however, sales have stagnated in the last three quarters. In short: If the IPO is expected to take place in early May, Uber will be a bet on the future - more precisely: a risky bet on the future.