Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

Recommended by:

JohnyP

To: bruwin who wrote (74665)	12/29/2023 8:41:56 AM
From: Sean Collett	1 Recommendation Read Replies (1) of 78783

I think of Uber and AirBnB as middleman tech companies. They sure make life more convenient, but they offer minimal value if they can't be ran for consistent profit. Uber last year had negative $9B in net income, negative operating margins, with an EBITDA margin of -24.5%. All the while their total debt has ballooned to $10.9B as of their latest 10-Q. They need a low rate loose money system to stay in operation. If we are in a "bull" market I would agree with Elroy in that really the only thing folks look for is rising revenue. This can be seen in the fact that Uber itself is trading for $63/s right now which is up 148% from the Jan 3rd close of $25.36/s. Fundamentals don't matter now, but we're clearly moving into a different stage of the market. These companies need consistent user usage/growth to maintain these valuations. Earnings warnings in recent 10-Q's (see Walmart) are enough to see there is going to be some pain and then I challenge that these parabolic rises for the Ubers will not just resolve sideways. AirBnB with an EV/EBITDA of 27 and Uber with 52.... -Sean

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next