Sunday, April 28, 2019

Uber IPO Analysis & Slowing Revenue Growth

Uber IPO is upcoming and valuation they were looking for was initially $120B but now it is down to $80B valuation and they are looking to raise $8B. IPO price initially targeted $47 to $55 but now they are looking for $44 to $50 as LYFT is down 20% from IPO price.

Slowing Revenue Growth at Uber is something to be noted. The growth has declined sharply from 70% sales growth to 20% sales growth and it may be a good time to IPO before growth stalls further. Currently Uber is operating at $4B loss per year run rate.

By the way PayPal has a partnership with Uber and they have committed to buying $500M worth of Uber shares at IPO price just before the IPO. Latest Quarter revenue was $3B so projecting this out to $12B 2019 revenue Uber will be validated at 7 times revenue.






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