Portfolio Wealth Advisors President and Chief Investment Officer Lee Munson thinks history could rhyme if and when Uber becomes a public company.
The ride-hailing company was recently valued up to $120 billion by Wall Street banks, according to Wall Street Journal. That’s $50 billion more than previous valuations, and more than General Motors (GM), Ford Motors (F), and Fiat Chrysler Automobiles (FCAU) are worth — combined.
Speaking on Tuesday’s Final Round, Munson predicted that Uber would follow in Facebook’s (FB) footsteps.
“I have to tell you, guys, it’s not that I’m necessarily going to buy this for my clients, but you start to think, how much do I use Uber?” Munson said. “I use Uber all the time. … So I use it. I think my judgment is colored. But bottom line, I think it’s going to be another Facebook.”
The behemoth social media network, founded in 2006 by CEO Mark Zuckerberg, was valued at $104.2 billion as it went into its May 2012 IPO. But out the gate, share prices quickly tumbled from its original $38 offering. The downward trend continued for months, falling to an all-time low of $17.58 in September that year. It took more than a year for the stock to recover to its original offer price.
“I’d rather see this IPO soften, and see where it could land,” said Munson about Uber. “And then maybe it’s like having Facebook at $20 a share after the IPO.”
Despite the rocky start, Facebook’s stock made an about-face half-way through 2013, and it hasn’t looked back since. Currently, Facebook’s shares closed Wednesday at about $159 per share. The company’s market cap is currently around $460 billion.
‘Long-term, I think they dominate’
Founded in 2009, Uber has survived several scandals and controversies, including sexual harassment claims, protests over low wages, and a massive intellectual property lawsuit. In 2017, Uber replaced its embattled Founder and CEO Travis Kalanick with Dara Khosrowshahi. A potential 2019 IPO sets off a race between Uber and its main rival Lyft, which is also looking to go public next year.
Over time, if Munson’s predictions are accurate, then Uber’s most turbulent days are behind it.
“Long-term, I think they dominate,” he said.
Kristin Myers is a reporter for Yahoo Finance. Follow her on Twitter.