It's going to be a wild ride. While (*most) people seem to like using Uber, headlines about how the unit economics don't work, how drivers can't make a living, how their working conditions aren't tenable keep popping up. How does Uber intend to address this?<p>In addition, I have questions about the service's ability to grow significant multipliers. It really feels like they've reached the majority of their markets three years ago, and have been tweaking things since. Why would you invest in this? Is there a clear value proposition for future growth?
So I'm kinda dumb when it comes to the stock market. Can someone explain how this happens?<p>Who buys stock at $45 and then the very next day sells it under that?
This can't be a surprise to anyone. Given Lyfts performance, after it's IPO, the fact that UBER is not profitable and really doesn't have a near term plan to be. The stock will continue to struggle.<p>They could follow the Amazon model to profits, get big enough to dominate the niche, but they at least need a profit engine, that would give them cash flow. It would let the company grow without having to continuously have to raise money and keep the stock price stable.<p>Look for the company to continuously raise money or to reduce service. None is good for the stock's future price.
Facebook's IPO was also off to a rather rough start[1], so I am not putting much stock into what happens in a single day.<p>I have not purchased or plan to purchase any Uber stock, I just think it's important to have perspective on this event.<p><a href="https://en.wikipedia.org/wiki/Initial_public_offering_of_Facebook#Subsequent_days" rel="nofollow">https://en.wikipedia.org/wiki/Initial_public_offering_of_Fac...</a>