Uber Stock – IPO News & Rumors
Ride provider Uber is losing money and could use the cash an initial public offering would bring, especially as the company struggles to find enough private investment to see it all the way to profitability. Uber CEO Dara Khosrowshahi has said the company will continue to lose money in the U.S. in the short term because of stiff competition from Lyft.
Still, many people are hungry to buy a piece of the company. Its top line is continuing to grow, even as it weathers hundreds of millions in losses to gain market share and enter new markets.
Below we offer answers/guesses to the most common questions about Uber’s future as a public company:
When will it have its IPO?
Sometime in 2019, probably in the second half of the year. In November of 2017, Uber Chief Executive Officer Dara Khosrowshahi said the company’s “target” is to go public is 2019, but offered no further details as to when that would happen during the year.
“We have all of the disadvantages of being a public company, as far as the spotlight on us, without any of the advantages,” he said. “…the whole board now agree(s) we should just go public. The numbers support it.”
Khosrowshahi has since repeated many times in 2018 that the second half of 2019 is the “goal,” meaning there still are no definite plans in place. However, it seems inevitable that the IPO will happen in 2019.
What will its stock symbol be?
This is not established, but presumably it would choose UBER as its symbol.
What stock exchange will it trade on?
Our best guess is that Uber would trade on the NASDAQ, which is the exchange that most technology companies are on, including Alphabet/Google, Apple, Facebook, etc. While in some ways Uber does not fit the traditional model of a tech company, the central platform for connecting drivers and riders resides on Uber’s Internet app, making technology a huge part of the company’s business.
What will its initial stock price be?
An IPO share price is almost impossible to guess far in advance. However, looking at recent IPOs of other companies, you can see that the initial share price is often in the teens or 20s. Uber will no doubt be a hot IPO, so it’s likely that it will debut in the 20s but immediately shoot up to a much higher price. However, a lot can change between today and when the IPO happens, so this is a guess based on the current environment, assuming no catastrophic downsides emerge.