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Uber now worth more than GM?

Old 12-04-2015, 06:06 AM
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Question Uber now worth more than GM?

http://www.theguardian.com/technolog...general-motors

I just don't see it.
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Old 12-04-2015, 06:26 AM
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Here is the thing. Uber value can drop to zero with a court ruling GM would take a lot more to loss that value.
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Old 12-04-2015, 06:34 AM
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investorers pouring money into it
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Old 12-04-2015, 06:55 AM
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I don't believe it either.
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Old 12-04-2015, 08:06 AM
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Originally Posted by chad13 View Post
Here is the thing. Uber value can drop to zero with a court ruling GM would take a lot more to loss that value.
GM damn near dropped to zero a few years ago. Without a massive tax payer bail out it would have gone the way of DeLorean
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Old 12-04-2015, 10:39 AM
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Stock bubble.
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Old 12-04-2015, 11:02 AM
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Wow
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Old 12-04-2015, 11:09 AM
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Originally Posted by gfretwell View Post
GM damn near dropped to zero a few years ago. Without a massive tax payer bail out it would have gone the way of DeLorean
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Old 12-04-2015, 11:12 AM
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Originally Posted by chad13 View Post
Here is the thing. Uber value can drop to zero with a court ruling GM would take a lot more to loss that value.
Actually GM did a pretty damn fine job of destroying the value of the company before someone bailed them out with our money.
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Old 12-04-2015, 11:15 AM
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Mid 90's all over again (the dot com age), stock price for companies go through the roof when company actually has no true book value (no assets).

I could be wrong but don't think so unless someone is day trading on it



Originally Posted by chad13 View Post
Here is the thing. Uber value can drop to zero with a court ruling GM would take a lot more to loss that value.
I agree
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Old 12-04-2015, 11:19 AM
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And Facebook is worth more than GE who makes everything from light bulbs to nuclear weapons.

Key point is that it's only "worth" more on paper because of their stock valuation.
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Old 12-04-2015, 12:40 PM
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A stock is worth what you can sell it for. All you need to do is overpay for a stock and find a bigger idiot to buy it from you.
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Old 12-04-2015, 02:36 PM
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Originally Posted by gfretwell View Post
GM damn near dropped to zero a few years ago. Without a massive tax payer bail out it would have gone the way of DeLorean
Actually, GM dropped to zero in the bankruptcy in 2009 - all shareholder wealth was lost.
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Old 12-04-2015, 03:29 PM
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Pipes vs. Platforms

Amazon Amazon

Although Uber's current valuation is probably a bit of a pipe dream, it doesn't mean the business model is flawed or without merit. Their costs can become negligible as they come closer to having a monopoly on peer-to-peer ride sharing. Their infrastructure is built, sure they tweak it here and there and add things occasionally but for the most part they are functional with what they have. Likewise, their "inventory" of drivers they pay very little for, insurance being the main thing.

GM on the other hand is in a brutally competitive environment where they have to re-engineer their product line every couple years. Furthermore they have very little in the way of pricing power, with every other automaker happy to step in and take market share if they price too high. Which business would you rather own?

I don't know how investors arrived at Uber's valuation or if it's reasonable, personally I'd guess it's on the high side of fully valued, but to compare to GM is silly they're two completely different business models with very different prospects.

Of course if Lyft or another peer-to-peer ride sharing service underprices Uber, which is entirely possible their rake is pretty high and driver's aren't happy, then Uber is a 0. It's monopoly or bust for Uber and that's what investors are counting on.
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Old 12-04-2015, 08:05 PM
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Well said, Hurricane. Uber not having inventory is some kind of burden??? NOT.

Would you rather own a fleet of (depreciating) taxi cabs in major cities all over the world or "lease" someone else's ride and let them take the depreciation hit?

Uber mirrors the eBay platform-- zero bricks and mortar, just some sharp people sitting at desks fiddling with well-written chunks of software. Zero risk of anyone having to purchase, manage and stack inventory in distribution warehouses, then biting fingernails hoping it sells by the use-by date

Once you see how scalable that model is (as in Global), the valuations and P/E ratios start to make more sense though as noted, regional legislation moves could suck the wind out of it real quick
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Old 12-04-2015, 08:12 PM
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Originally Posted by mikefloyd View Post
Actually GM did a pretty damn fine job of destroying the value of the company before someone bailed them out with our money.


Government Motors.
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