Tag: Uber

  • LUPA Stocks –  Four Stocks Funded by Venture Capital

    LUPA Stocks – Four Stocks Funded by Venture Capital

    4 min read

    LUPA Stocks - Four Stocks Funded by Venture Capital

    LUPA stocks are Lyft, Uber, Pinterest, and Airbnb stocks. This makes LUPA nickname. The other nickname for these stocks is PAUL stocks. Some of them are already publicly traded but some are waiting to be in the coming future, for example, Airbnb. The common thing for all of them is that they all are companies funded by venture capital and private capital. They have become well-established brands and widely recognized businesses. The other common thing is that all of them enjoy users’ support, but profits have been mysteriously absent. 

    LYFT

    Lyft went public in March this year. In August its shares dropped 30% compared to their $72 initial IPO price. But there’s good news too, as not everything is bad for Lyft.

    Several days ago, actually one week ago, Guggenheim Capital declared it’s improving Lyft’s shares advisory from neutral to buy. At the same time, they announced a targeted price is at $60 which is a 19% increase. 

    The main reason behind is calming down of the price war with Uber.

    LUPA Stocks

     

    Uber is expanding its business to several new fields like food delivery in the domestic market, but more importantly, Uber is expanding its operations internationally. So, the price war with Lyft now seems pretty much tricky. Uber is making loses in these parallel business and has to cover them somehow. The price war with Lyft is exhausting and without the expected result. Moreover, Uber has to earn money in the domestic market to cover losses caused by international competition and the intention to expand the business. It likely went about it too early. 

    The consequence is that Uber has to raise its prices for ride-sharing if they want more cash. That is an opportunity for Lyft to do the same.

    Lyft is still an unprofitable company. Its share price is five times its annual sales. But Guggenheim claims that it is the question of the day when Lyft will start to earn profits from its business. Lyft is targeting a valuation of $21-23 billion. Fidelity Capital Markets holds about 7% of the Lyft’s non-public shares.

    Uber Is part of LUPA stocks

    Uber is Lyft’s main rival in the ride-sharing industry. The last decade was pretty eventful for them. This ride-sharing app is funded by venture capital. Their first appearance on the market was under the name UberCab in 2009. They expanded their business internationally and now they have food delivery, trucking, and scooter rental included domestically. Uber is one of the biggest tech IPOs and became publicly traded since May 2019.

    The early investors made millions, maybe even billions of dollars since the company came into the stock exchange. Anyway, their investment is increased in value.

    This somewhat controversial company has many challenges. Uber market cap on August 30, 2019, was $55.69B. 

    Honestly Uber, which is not posting profits, is an overvalued company.

    LUPA Stocks

     

    In Jun this year, Uber predicts that the value of its initial public offering will be from $44 to $50 per share. That would mean a valuation of up to $91 billion. But it is lower than $100 billion what was prior expected. Still, Uber is one of the highest offerings in history.

    Uber has another problem. Their attitude toward drivers was the subject of many scatting news reports and even strikes.

    Drivers have complained about their pay. The criticism of unfair labor practices has caused a public resentment toward the company. 

    Shares of Uber were at $33.96 in mid-August, which was the lowest since the stock’s appearance in May. And Uber shares continued to slip and the shares dropped below $36. 

    Pinterest is one of LUPA stocks

    Pinterest, another one among LUPA stocks, is a popular photo-sharing social-media online platform.

    The company claims that it has 250 million active users every month. The company started to be publicly traded in April this year and its stock price registered more than 28% rise on its first day of trading. The company’s stock started trading at $23.75, above the initial offering price of $19 and finished the day at $24.40 in April this year.

     

    It will anyway be tough for this social media company to be able to be a real rival of Twitter or Facebook. However, Pinterest management has reaffirmed a much less competitive path to growth than its rivals. 

    Their market cap is $18.68 billion and stocks are traded at $34.42 in August this year.

    Airbnb is LUPA stock

    The company was launched in 2008 and probably surpassed the founders’ expectations.

    This popular short-term apartment rental platform has upset the whole travel industry. For example, the best example of how huge it can be is the case of New York. This city has limited Airbnb’s ability to operate. The powerful lobbying forces from the hotel industry caused that.  

    This service has long been in the spotlight for an IPO. Now it looks the Airbnb is reading for its market debut. The company declared they made “substantially more” than $1 billion in revenue in the 3rd quarter of 2018. Some experts claim that the company’s profitability makes it a top candidate for the direct listing.

    It looks that the Airbnb can be the next big play. And their IPO may happen in 2020.

    Bottom line

    These four companies are among the most important ‘unicorns’. All of these LUPA stocks are startup companies valued at more than $1 billion. LUPA stocks are interesting to investors who are currently willing to reward tech businesses that lose money. They already did so with Amazon or Netflix in their beginnings. LUPA has been able to develop their businesses with the support of venture capital and private investments. But the public markets are not so welcoming to them at the moment. The stock prices show that. Still, they are worth investing. Maybe now more than ever as their current low prices suggest large raises in the future. And the future currently belongs to the tech companies.

  • How is Beyonce as an Investor – Celebrity Investors

    How is Beyonce as an Investor – Celebrity Investors

    2 min read

    Beyonce as an Investor
    Beyonce Knowles-Carter

    Beyonce Knowles-Carter is a singer. But, also, she is a worldwide brand. You can find her name on fashion marks, cosmetic industries, and Pepsi commercials.

    Her career began with girl-group Destiny’s Child and her destiny is incredible. Beyonce became one of the most popular singers in the world. She earned 23 Grammy awards. Also known under the nickname, Queen Bey.
    She is a businesswoman too. Beyonce owns a strong portfolio of real estate in the US and all over the globe. Most of them she owns in partnership with Jay-Z, her life partner. But some investments she holds by her own. 

    Beyonce invested in tech.

    Just like Ashton Kutcher, Queen Bey is interested in the tech world. BeyoncĂ© started the management company Parkwood Entertainment that have invested $150,000 into Sidestep. It is an app for purchasing concert merchandise. In the beginning, Sidestep was selling t-shirts and posters for Queen Bey. After some time, when Beyonce saw its profit and potential, she invested in Sidestep. According to Sidestep’s CEO Eric Jones, the idea of “a tiny scrappy startup doing the biggest tour in the world” was great.

    That was the first step as an investor

    Then, 2015. Uber came with an offer of $6million to perform on the company’s event in Las Vegas. But Beyonce had an offer too. Instead of cash, she asked to be paid in Uber’s shares. After Uber went public that $6 million were turned into to profit $300 million from her shares. 

    Beyonce isn’t the only celebrity who invested in this company before it got in IPO. 

    Apart from profits in the musical industry, Beyonce surely recognizes the point of diversifying her investment portfolio. Her investments are also in Dereon Clothing, deals from General Mills, L’Oreal DirecTV, Pepsi, Samsung, Ford, American Express, etc. Queen Bey released: “I have a lot of property. I’ve invested my money and I don’t have to make any more, because I’m set. I’m now able really to be free and just do things that make me happy.”

    Beyonce as an investor, not only as a singer or actress, proved that she is not just a hype. 

    Together with Jay-Z, she is part of Hip Hop’s first billionaire couple into several investments, revenue, and endorsements.

    Beyonce as investor thinks ahead 

    She made about $4 million from the 2018 Coachella Valley Music and Arts Festival. She was the first African-American woman to headline the festival. Her performances were a tribute to the culture of black colleges and universities but also inspired by black feminism.

    She also signed a $60 million worth deal with Netflix which brought Homecoming, a documentary about that show.

    Beyonce supported to start a vegan food company 22 Day Nutrition. She’s also a stockholder in streaming service Tidal.

    Queen Bey is widely recognized as a smart business icon. She has earned hundreds of millions of dollars with conservative investments. And she spends her money on extravagant gifts like Bugatti Veyron Grand, private jet, $88 million purchase of a Bel Air mansion, etc. She earns, she spends.

    Musicians aspiring to get rich off royalties are fooling themselves. The real money comes from smart investing. 

    Beyonce Knowles-Carter is a smart investor.

  • May the IPO Be With You

    May the IPO Be With You

    3 min read

    Uber lyft strike over working conditionby Gorica Gligorijevic

    On the eve of expected IPO, drivers of both Uber and their competitor Lyft are planning to stage a strike across the USA on May 8.

    With the upcoming IPO for Uber, a ride-hailing company, 2019 season of unicorn and decacorn tech IPOs is scheduled to continue. Analysts are projecting a valuation of Uber to reach between $91B and $120B, very possibly reaching rarified air heights of valuation above $100B.

    By breaking this barrier Uber would become only second hectacorn after the Ant Financial. Such valuation would bring a windfall for both the shareholders and the company which is often castigated for burning its cash reserves.

    But not everything is rosy in the Uber-land.

    For the May 8, Uber and Lyft drivers in the USA are planning to stage a strike against the working conditions and the company’s policies. Drivers in Chicago, Los Angeles, New York, and San Francisco are planning to log off during the morning rush, between 7 A.M. and 9 A.M. local time.

    There are indications that they will be joined by their colleges across the country, but also in London. In cities which are hosts to Uber’s offices, the plan is to also stage a protest in front of them, and such events are expected both in the USA as also in other countries where Uber is operating.

    Organizers and supporting organizations of this protest, such as Rideshare Drivers United – Los Angeles and the New York Taxi Workers Alliance (NYTWA), are demanding safer and more secure work environment and that the company ensures that its drivers actually can make a living off their income.

    On May 3 NYTWA has published a post on their web site has announced their plan to support the strike.

    Their members, among which are not just cab but also Uber, Lyft and Juno drivers; have decided by vote to support their colleges from Uber around the world. “With the IPO, Uber's corporate owners are set to make billions, all while drivers are left in poverty and to go bankrupt”, states the post.

    The organizers have listed as one of the demands that the driver’s commission is guaranteed and set in the 80-85% range.

    While drivers in New York have fought and won a guaranteed equivalent of $17.22 because the drivers themselves must pay the payroll tax it accounts for $15 hourly rate, various fees imposed on them by Uber eat almost half of their incomes.

    One of the biggest complaints of drivers is work insecurity.

    uber and lyft strike

    Particularly telling are the cases of drivers who were fired with no explanation whatsoever, among them some have reasons to suspect that it was a retaliation for the participation in previous protests against Uber’s corporate policies. And with the company flooding streets with new drivers work is less and less certain as the competition for fares grows.

    But many voices are concerned with the other side of this situation. With an increased number of novice drivers, who are not yet familiar with the Uber driver’s app, quality of services is sharply plummeting. And with company’s very lax background check of drivers, it is more than reasonable to presume that the safety of customers is also affected, while Uber didn’t have a glowing reputation for safety, to begin with.

    As adding fuel to this flame comes the content of Uber’s S-1 filing and the immediate reaction from the Wall Street analysts.

    “We have incurred significant losses since inception. We incurred operating losses of $4.0 billion and $3.0 billion in the years ended December 31, 2017, and 2018, and as of December 31, 2018, we had an accumulated deficit of $7.9 billion”, is stated in the filling.

    Doom isn’t the worst scenario

    Though these are not the worst of the doom and gloom Uber is placing in their documents, they are obviously hoping to emulate the Lyft, who had a decent IPO featuring the similar sentiment in their own filling. The trump card of Uber’s IPO is two numbers which show that they are both a huge company and a very small start-up. They are boasting that their drivers have completed more than 10 billion of rides in 63 countries during 2018, but they make just a measly 2% of public commutes over the same period.

    But this double scale of size may prove to be irrelevant as the filing states that the company will need to generate and sustain increased revenues and decrease proportional expenses “and even if we do, we may not be able to maintain or increase profitability.”

    The Uber is intending to continue, and actually increase the level of, investments into driverless cars, e-bikes, and e-scooter. 

    In essence Uber plans to cannibalize own business model in an effort to achieve profitability. In other words, Uber which was promising to disrupt the world of daily commutes is now disrupting its own business outlook.

    Wall Street has already voiced its opinion.

    Uber must decrease its expenses (read: cut down drivers’ commissions) to achieve profitability. Though the company in its early days have attracted many part-time drivers who saw it as an opportunity for extra income through a side gig, for the majority of current drivers is the only source of income. Besides that, they are also working extremely long hours in a very uncertain environment, where they literally do not know whether they will have a job the next day.

    And psychological professionals cite these stressors as primary factors behind suicides of 8 Uber drivers in the USA over the past year.

    Many public figures and activist investors were speaking for years against the business model of Uber. But maybe the worst condemnation of it comes from company’s own filing on the eve of their IPO: “Our workplace culture and forward-leaning approach created operational, compliance, and cultural challenges and our effort to address those challenges may not be successful
 a failure to rehabilitate our brand and reputation will cause our business to suffer.”

    Don’t waste your money!

    risk disclosure

Traders-Paradise