a reply the article received
Soon the Uber bubble will burst. Some of the main reasons are this. The drivers will be classified as employees and all the compliance fees will be put into the rates which will eliminate the predatory pricing. Thereafter, Uber will not be competitive with the livery industry.
The SEC is investigating all its unregistered securities transactions from inception. There have been no valid financial disclosures given to the investors. Security fraud if proven would burst the bubble alone. There is absolutely no hope the SEC will approve an IPO as Uber can not make a certified financial statement or valid prospectus and registration. No accounting or law firm would falsified such documents.
Tax evasion is their main concern as the company has not paid any taxes including sales tax where required. The IRS CID division is investigating such tax fraud.
Uber's burn rate is over 80% of new monies. American investors dried up and Uber went to China but the Chinese Investors are demanding valid financial statements and disclosures which Uber can not produce. There are no more investor suckers. Current investors are likely to pull out whatever is left of their investments and write it off.
Uber driver's are losing money on each transfer. The average gross fare is $13.00. Uber's fee is 20-30%, maintenance, insurance, fuel, tolls and parking, depreciation, self-employment tax (14.5% if they even pay it) all totals around 57% which leaves the driver a net of $3.00/3.50 per run. Most transfers average about an hour counting travel time to and from customer. Maybe two runs at best and in NYC, Houston, Dallas, LA each run averages with traffic over an hour. Once the amateur drivers figure out the net pay before income tax, they quit the sucker deal. Driver turnover is 30-60 days and the mass recruiting has slowed. The Uber social media ads are deceiving and luring new drivers into criminal activities as they have no commercial permits or insurance and
won't be able to raise funds without massive dilution, will be forced to sell company for far less than they had hoped. Most of their options will be left underwater
it is obvious that the execs have utter disdain and disgust for investors (feeling is mutual fellas). Take the company private. They can save $1M in public co fees and do what they want. Almost 20 years as a public company and can't break $100M market cap. Is that a record?
Stanford should take back their degrees
so it reduces shares by 8% which in theory increases profits by 8%. Big whoop. If they doubled the dividend it would lure a different type of investor who is content to collect a 5% dividend and some possible share price growth.
earnings on 8/3, a little earlier than normal. There is an investor day the next day (Piper Jaffray) so that kind of forced their hand. I never understood why it take them 5-6 weeks to get the numbers out when billion-dollar companies get them out in 3-4
actually, their revenue is less than $1B and they are losing a ton. Their losses exceed their revenue. Imagine if they actually had to pay employee taxes, expenses, and benefits.
Analysts at Goldman Sachs initiated coverage on shares of Altria Group (NYSE:MO) in a research report issued to clients and investors on Thursday, Market Beat reports. The firm set an “outperform” rating and a $57.33 price target on the stock. Goldman Sachs’ target price indicates a potential upside of 11.91% from the company’s current price.
Not to interrupt you losers talking politics, but something involving the company happened today. MO up over 3%