Overhyped Uber Technologies Should Currently Trade Below $20 Due To Many ReasonsSummary
Uber has been reporting massive losses while burning cash with no end in sight, primarily due to
fierce competition, low-margin businesses and lack of economies of scale.Also, Uber's Rides, its core business, is facing serious challenges in its core markets because the gig economy is under attack by regulators worldwide, which has been downplayed so far.
Proforma the Careem deal, net debt has risen significantly, and due to continued cash burn, Uber will announce a debt or an equity offering or both in the next few months.
We believe that Uber should currently trade below $20 per share or about 1 times its revenue due to many reasons.
Uber is an overhyped stock that could end up being another fad with its shares going to zero or almost zero in the next five years, same like Sidecar.
Uber burned about $2.5 billion in Q4 2019 alone.
Uber's positive net debt (debt exceeds cash and cash equivalents) could reach or exceed $4 billion by the end of 2020.
Source: Seeking Alpha
https://seekingalpha.com/article/432529 ... ent=link-6
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