Uber could be public at valuation higher than GE or Morgan Stanley
Jerod Harris | Fortune | Getty Images
Uber CEO Dara Khosrowshahi attends the Fortune Most Powerful Women Summit in Laguna Niguel, California, October 3, 2018.
Uber could become public at a stock price that would make it larger than any of the well-known names in S & P 500.
Uber is different from potential market participants in an important way – it doesn't make money.
San Francisco-based startup has been increasing billions of dollar losses before the market debit. Its adjusted losses amounted to $ 1.85 billion in 2018, according to the first IPO prospect. These losses were reduced from 2017, when Uber lost $ 2.2 billion. The company increased its turnover to $ 11.3 billion, an increase of 43 percent year-on-year.
Most technology companies are not known for making money in front of public offerings. The lift, which was released in April, had a loss of $ 911 million in $ 2.1 billion in revenue last year. Twitter lost money when it was listed on the New York Stock Exchange in 2013. Snap, Spotify and SurveyMonkey – all of which were listed in 2018 – were also bleeding money.
Lift, Zoom and Pinterest all priced over their promotional selection this year. The values for these technological unicorns are based on future profits, as almost none of their businesses are profitable yet.
Market valuation expert Aswath Damodaran has said that the last totals are too high – or, as he said, "scary".
"I'm a little scared of Uber of $ 100 billion," said NYU Stern professor CNBC. "I think both Lyft and Uber are struggling with a way to convert revenue growth into profits. So you pay $ 100 billion for a company that still doesn't have a viable business model. It's scary."
WATCH:
Uber's IPO will be five times the size of Pinterest and Zoom's IPOs combined
