Uber is a great ride-sharing technology, but governments have regulated it to death that it does not have the pricing advantage over the taxi cartel. Still, Uber remains a cheaper and friendlier alternative.
But it is being killed in the market.
On Wednesday, Uber shares plunged five percent to an all-time low of $25.58 per share. To put it into perspective, the company’s record high was $47.08 a share.
Here is the stock’s performance since it debuted:
So, why is the tech titan plunging? For several reasons:
– Uber insiders are dumping the stock.
– It has taken on too much debt.
– The earnings per share are -$4.90.
– Most active platform users were lower than projected (103 million versus 107 million).
– Uber lines (Eats and Freight, for instance) are losing money.
While Lyft is trading just above its all-time low, investors appear to be more bullish on the Uber rival because it is clearer in its messaging on Wall Street.
Can Uber rebound?
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