Uber recently published its first earnings report as a public company. Although tech giant definitely gets bigger, a net loss of $ 1.1B has nonetheless occurred.
Post-IPO Uber doesn't get much better, showing that investor interest in initial public offerings is falling.
Uber's earnings are still higher than last year, but the company is still exploiting too thinly. The company achieved a net loss of $ 1.1B in the first quarter of 2019 – the largest ever.
However, it also had a significant revenue drop, to $ 3.1B.
Uber Up's and Downs
Uber's main revenue stream appears to come from Uber Eats, which generated over $ 536 million in the first quarter of this year. There is a jump of 89 per cent from last year. However, Uber Eats is far less profitable than mediation since restaurants and drivers make up a large part of the sales from the company's profits. Adjusted for net revenues, Ubers rideshares increased only 10 percent compared to.
Although Uber is now a public company, the public stock is currently trading well below expectations. The stock is currently trading at around $ 40, even though it was priced at $ 45 for its IPO. In total, the company increased $ 8.1 during its IPO.
Are the IPOs the next ICOs?
In the past year, the first market for coin supply (ICO) has gone quiet. Once a thriving industry, the crowdfunding method has gone out of favor because of the many scams. In fact, many of the most successful ICOs have produced almost nothing for their investors. That's billions of billions of dollars effectively wasted.
Investors today appear to be burnt out on IPOs just as they were exhausted by ICOs last year. With IPO no longer promising returns, and even tech unicorns that do not meet expectations, the market seems to dry up.
Currently, industry leaders are trying to repackage ICOs with compliance as embedded as security token offers (STOs). Big companies like Overstock.com have already begun to get involved in this new sector. The IPO is just starting to fall out of favor and likes the same fate as the once popular ICO.
With Ubers IPO, which does not meet expectations, we can expect the newly created company to be an indicator of investors looking for alternatives.
Do you think investors are exhausted from IPOs? Will Uber continue to be profitable in 2019? Please let us know your thoughts in the comments below.
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