|Day's Range||12.73 - 12.73|
Commerzbank loaded up on newly public stocks that were slumping in the third quarter. All but Uber have continued to slip in October.
Facebook's plan to the launch the world's most widely used currency is falling apart…Source: Poring Studio / Shutterstock.com At the Cut, we've made it our mission to expose how Big Tech firms are helping build a Surveillance Society that tracks our every move.And faithful readers will remember that Facebook (NASDAQ:FB) CEO Mark Zuckerberg is one of the chief villains in this plot.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Reasons to Buy Canopy Growth Stock As we've shown you, the Zuck isn't happy with "only" running the world's largest and most powerful social network.He also wants to run the world's largest currency.But just this week, powerful figures in Washington made it clear they wouldn't brook any challenges to their monopoly over the money system.In today's dispatch, we break it all down… and show you what it means for bitcoin.But first, let me bring you up to speed if you haven't been following along…A "new global currency"…In June, Facebook announced it was launching a corporate version of bitcoin called Libra.Facebook calls Libra a "new global currency." And it claims it will make sending and receiving money anywhere in the world as easy as sending and receiving a text message.The only problem is that the feds see the money system as their turf. They're not going to simply hand that power over. And they've set out to bury Libra.And as you'll see, they're not going after only Facebook. They're also targeting Libra's corporate backers.Libra originally had the backing of 28 companies…They make up something called the Libra Association.It's the governing body that oversees Libra. And it includes music streaming company Spotify (NYSE:SPOT) … ride-hail firms Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT)… and telecommunications giant Vodafone Group (NASDAQ:VOD).But on Friday… just two days before the inaugural meeting of the association in Geneva, Switzerland… six major backers pulled the plug.Payments firms Visa (NYSE:V), Mastercard (NYSE:MA), Stripe, and Mercado Pago… along with eBay (NASDAQ:EBAY) and the company behind online reservations site Booking.com… cut their ties.This follows PayPal's decision to pull out earlier last week.These firms were reacting to a threat from two U.S. senators…On October 8, two U.S. senators - Sherrod Brown from Ohio and Brian Schatz from Hawaii - sent a letter to Visa, Mastercard, and Stripe.They warned these companies that they were concerned about Libra. And they said that membership in the Libra Association would lead to increased regulatory scrutiny.As our tech expert, Jeff Brown, told readers of our free Bleeding Edge tech investing e-letter, "If that isn't a veiled threat, I don't know what is."These senators want to kill Libra…As world-famous crypto expert Teeka Tiwari has been telling his readers, the feds see Libra as a threat to the U.S. dollar… and Washington's stranglehold on the global monetary system.Here's what he wrote recently…Facebook has 2.7 billion users. If it launched today, mass adoption of Libra would be immediate. It would become the world's most widely used currency almost overnight.Imagine if Facebook negotiates with its advertisers to give Libra users 5% to 10% discounts on all their products and services. How would governments or central banks compete? They couldn't… which is why they want to stop Facebook.And make no mistake, Libra is drawing fire from both sides of the aisle. Teeka again…In a rare instance of bipartisan unity, liberal U.S. congresswoman Maxine Waters and President Trump have both condemned Libra.Waters demanded that Zuckerberg appear before Congress. She also claimed that Libra would allow Facebook to "wield immense power that could disrupt" governments and central banks.And President Trump has condemned Libra on Twitter (NYSE:TWTR). He said Libra would "have little standing or dependability."U.S. lawmakers are taking the threat from Libra so seriously they've proposed a bill to ban Big Tech firms from issuing their own digital currencies.And don't forget the leader in the race to be the Democratic nominee for president, Elizabeth Warren. She promises to break Libra up using antitrust laws if she's elected.And if Legacy Research cofounder Bill Bonner is right, Warren is a lock to be the next president of the United States.Of course, it's hard to feel sorry for Facebook…As we've been warning you, Facebook is a core component of the Deep State's surveillance apparatus. That became clear after National Security Agency leaker Edward Snowden's revelations in 2013.On the surface, Facebook is a social media company. But it's really a for-profit mass surveillance company. It's the last entity on Earth you should let snoop around your finances.So, even if Libra becomes an alternative to the dollar, the euro, or the yen, we wouldn't touch it with a barge pole.Here's digital currency pioneer Marco Wutzer, who heads up our Disruptive Profits advisory…You have to grasp one thing: Facebook and its corporate partners have zero interest in giving you more freedom. They don't care about creating a better financial system or a better financial life for you.Libra will only suck up even more of your private personal data and further rob you of your financial privacy. Facebook is a giant corporation. All it cares about is profit. And that profit is based on how much of your data it can vacuum up. That's the bottom line.Libra may be convenient to use. But as Marco says, it's a net negative when it comes to financial freedom.What does this all mean for bitcoin?We'll leave the last word on that with Teeka…Facebook and bitcoin aren't necessarily aligned. But it's in Facebook's best interest to lobby for a more accommodating crypto regulatory environment. In other words, the enemy of my enemy is my friend.I expect Facebook to use its massive resources to influence global regulatory regimes. If it succeeds, it'll be good for crypto. And even if regulators do kill Libra, it won't really change anything.Governments still don't like crypto. Big whoop. We've been dealing with that for almost four years now - while adoption of digital assets continues to grow at a record pace.It's why Teeka believes bitcoin will zoom past $20,000 and break out to new all-time highs in the next eight months. You can read more about that here.Regards,Chris Lowe October 17, 2019 Dublin, Ireland More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Reasons to Buy Canopy Growth Stock * 7 Restaurant Stocks to Leave on Your Plate * 4 Turnaround Plays to Buy Now The post The Government Wants to Bury Facebookas Libra Cryptocurrency appeared first on InvestorPlace.
Investing.com - Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT) were under pressure on Friday after lawmakers sent them letters demanding answers after the companies failed to send representatives to a hearing.
The last decade has been great for those with assets, and not so great for regular savers Continue reading...
Paul Gryglewicz, Senior Partner at Global Governance Advisors By Oliver Estreich Fast-growing companies can be surprised when their shareholder base switches from insiders and a few loyal investors to a diversified base that thinks about corporate governance much differently. The result is an onus on companies to carefully identify shareholder vote guidelines and identify any […]
If the city's new Office of Emerging Technologies establishes requirements for self-styled disruptors, it shouldn't let insiders use the levers of government to game the result.
Lyft has expanded its healthcare division recently, and this month Lyft is providing free rides to and from breast cancer screenings.
Uber and Lyft chose to skip the congressional hearing on Wednesday. The hearing was meant to examine the companies' safety and labor practices.
(Bloomberg) -- Uber Technologies Inc. and Lyft Inc. may soon face stepped-up oversight after largely avoiding traditional rules during their rapid expansion in recent years, the chairman of the House Transportation and Infrastructure Committee said on Wednesday.Representative Peter DeFazio, an Oregon Democrat, said at a hearing that ride-hailing companies have revolutionized how people travel but also have a lot of problems, such as adding to traffic congestion and conducting “woefully inadequate” background checks for drivers that have put passenger safety at risk.DeFazio’s comments signal that U.S. lawmakers may take a more critical look at how Uber and Lyft fit into the nation’s transportation system. Uber, in particular, has been criticized for avoiding traditional transportation and labor regulations by labeling itself a technology company, drawing scrutiny from federal prosecutors and officials in cities such as San Francisco and London.Uber and Lyft declined to send representatives to testify at the hearing after the companies “led us on for six to eight weeks that they would testify,” DeFazio said. In a statement on Thursday Lyft said the panel first contacted it about the hearing on Sept. 30. The hearing should serve as “a wake-up call to the companies that have flooded our roadways with disruptive technologies and investor capital that their days of operating with little public policy and regulatory oversight in the transportation space are coming to an end,” DeFazio said. (Adds Lyft comment in fourth paragraph.)To contact the reporter on this story: Ryan Beene in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Jon Morgan at email@example.com, Gregory MottFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
SAN FRANCISCO, Oct. 17, 2019 -- Lyft, Inc. (Nasdaq:LYFT) announced today that Logan Green, Co-Founder and Chief Executive Officer, and John Zimmer, Co-Founder and President,.
The Council passed a measure that would increase fees for ride-hailing companies like Uber and Lyft when they do business at Phoenix Sky Harbor International Airport.
After Uber Technologies Inc. (NYSE: UBER) and LYFT Inc (NASDAQ: LYFT) executives failed to appear at a hearing on Capitol Hill at which they were to be chastised for lax safety oversight, lawmakers turned their attention to the merits of making it more difficult for employers to hire independent contractors. The hearing, held by the Highways and Transit subcommittee of the House Transportation & Infrastructure (T&I) Committee on October 16, focused in part on the need for driver background checks for so-called "transportation network companies," or TNCs, in the wake of homicides and assaults committed by drivers or those posing as drivers. "It's hard to imagine that Uber and Lyft didn't actually show up here today – it's really disrespectful to the committee and a bad play on their part," said Thomas Suozzi (D-New York).
Uber Technologies Inc and Lyft Inc skipped a U.S. House of Representatives hearing the ride-hailing industry, angering lawmakers who threatened tighter regulation for the fast-growing market. The two ride-hailing companies had been asked to appear as part of a House Transportation and Infrastructure Committee inquiry on safety, labor and congestion. "Their failure to appear at this hearing is a telling sign that they would rather suffer a public lashing than answer questions on the record about their operations," the head of the panel, U.S. Representative Peter DeFazio, a Democrat, said at the subcommittee hearing.
Uber Technologies Inc and Lyft Inc declined to appear on Wednesday at a U.S. House of Representatives hearing on issues relating to the ride-hailing industry, a congressional committee said. The two ride-hailing companies had been asked to appear as part of a House Transportation and Infrastructure Committee inquiry on safety and labor practices as lawmakers seek to prepare legislation that will impact the industry. "Their failure to appear at this hearing is a telling sign that they would rather suffer a public lashing than answer questions on the record about their operations," the head of the panel, U.S. Representative Peter DeFazio, a Democrat, said in his prepared remarks.
(Bloomberg) -- Wall Street’s tepid reception to highly-anticipated IPOs from Peloton Interactive Inc. and SmileDirectClub Inc. shows rising anxiety that a recession could be on the horizon, analysts say.The struggles for the home exercise company, the dental aligner maker, and ride-hailing peers Lyft Inc. and Uber Technologies Inc. may give a glimpse into how investors are valuing their services as well as what a global slowdown could mean for the consumer-dependent stocks.“The weakest link is retail. Companies that sell to –- or stocks that are bought by -– individual retail buyers will feel the effects soonest and most,” said Rett Wallace, CEO of Triton Research Inc.Weakness in these mega-IPOs has partially been driven by a rotation toward more defensive business models, MKM analyst Rohit Kulkarni said in a telephone interview. While Uber and Lyft could benefit from a spike in part-time drivers, demand for their services and Peloton’s subscription numbers may take a hit if consumers have less money to spend, he said.“Consumer companies such as Uber, Lyft and Peloton will probably feel a more near-term impact of any potential slowdown in the macroeconomic space,” Kulkarni said. Traders could shun their monthly subscriptions or pay-as-you-go models, if slowing revenue lengthens their path to profitability.The S&P 500’s brief climb above 3,000 for the first time in three weeks provided a lift for some of the beaten-down companies on Tuesday. Peloton had its best session, rising 9.2% off a record low, while SmileDirectClub bounced 6.3% to trade back above $10. But both stocks are still trading well below their offering prices.Both had also set the terms for their IPOs in September, shortly after the spread between 3- and 10-year Treasuries bottomed out in August, indicating a higher probability of a recession. According to data compiled by Bloomberg, the probability of a recession had then peaked at nearly 40%.SmileDirectClub’s more than 50% decline from its September offering has placed it among the year’s worst performers. An analyst who follows the company closely said in an email that he is impressed with its business model but acknowledged that “it certainly will have exposure to an economic downturn given the discretionary nature of orthodontics.”Some of the best-performing IPOs show the inverse. Application software companies have seen their stock prices surge as investors favored firms that face businesses instead of individuals. Zoom Video Communications Inc. and CrowdStrike Holdings Inc. are a few that come to mind when surveying the landscape of red-hot companies whose business models might be more sustainable.While Beyond Meat Inc. remains the year’s best performing IPO, with a more than 385% gain since going public in May, it has cooled off from its summer sizzle. The stock has lost almost half its value from a July 26 peak, shedding almost $7 billion in value.Now, the challenge for investors, according to Kulkarni, is valuing large, unprofitable companies at just the time when the global economy may be headed for a slowdown, and maybe even recession.To contact the reporters on this story: Bailey Lipschultz in New York at firstname.lastname@example.org;Drew Singer in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Jennifer Bissell-Linsk, Scott SchnipperFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Saudi Aramo is forging ahead with IPO plans that may value the company at $2 trillion, as investors weigh the risks associated with the offering.
Entrepreneur brothers Courtney and Carter Reum's three-year-old venture firm announces a new fund, backed by Sir Richard Branson, Arianna Huffington and Hong Kong billionaire Silas Chou.
Uber (NYSE: UBER) doesn't appear to have a plan for being profitable anytime soon, and Uber stock is a losing proposition under nearly any circumstances.Source: NYCStock / Shutterstock.com I've repeatedly told investors to stay away from ridesharing IPOs stock and Lyft (NASDAQ: LYFT) stock. In five months, UBER stock price is now 33% below its IPO price.In a little more than six months, LYFT stock is now down about 45% from its IPO price. I'm still not a fan of either stock given their mounting losses and unclear paths to profitability and sustainability.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, for investors who are determined to play the ridesharing stocks, Uber stock is the only one I'd recommend buying. What's Wrong With Ridesharing Stocks?All it takes to get a sense of what's wrong with ridesharing stocks is a quick look at quarterly earnings. Uber shares tanked after the company reported a record second-quarter net loss of $5.24 billion, much higher than analysts had anticipated. Losses were 30% higher than in the first quarter. * 7 Beverage Stocks to Buy Now Lyft didn't fare much better, posting a net loss of $644 million.To make matters worse, revenue growth at both ridesharing companies is already slowing. Investors cheered the fact that Lyft's revenue growth slowed less than anticipated in the third quarter. It's now at around 62% year-over year, down from more than 100% growth last year.To make matters worse, at a time when ridesharing stocks are struggling to prove a long-term path to profitability, costs may soon be on the rise. California's AB-5 will soon require Uber and Lyft to classify its drivers as employees rather than independent contractors. That transition will force Uber and Lyft to pay for benefits and all the other costs associated with employees.Other states may soon follow suit. The end result could be a domino effect that sweeps the nation.Some analysts believe Uber and Lyft will ultimately negotiate some sort of legal compromise in California. Regardless, the finish line of profitability for ridesharing stocks will soon be even farther away. Why UBER Stock Over Lyft?Lyft has a higher growth rate than Uber and is gaining market share. But Lyft has more exposure to AB-5 and California, which represents 24% of Lyft's total revenue. Uber is a bit more insulated from California at just 17% of total revenue.Most importantly, Uber is a much more diversified play. Uber Eats and Uber Freight are in the early growth stages. Uber is also investing in scooters, bikes and even flying taxis.Citi analyst Itay Michaeli recently upgraded UBER stock from "neutral" to "buy." Michaeli says the market seems to be assigning zero value to Uber's non-core businesses."Our new [sum-of-the-parts] framework values Rides at ~$31-32/share, implying that Uber shares currently ascribe no value to Eats, Other Bets and minority holdings," Michaeli says.Michaeli says Uber's positioning in the autonomous vehicle technology race has improved this year as well."Also potentially overlooked are the potential benefits from next-gen vehicles (EVs ADAS platforms) that could further unlock the profit pool while offering opportunities to address current industry issues," he says. The Bottom Line on Uber StockFor the record, I'm still not a fan of UBER stock in the near-term. Both ridesharing companies still appear to be several years away from profitability in a best-case scenario. Plenty can change in a couple of years. If these companies can't turn a profit in a booming economy, what will happen when the economy inevitably slows down?However, Uber's position as the market leader and its business diversification and growth opportunities make it the safer bet to me. It also has less immediate exposure to AB-5 than Lyft.The only way I would recommend buying UBER stock is the only way Uber buyers would have made a profit in 2019. By making Uber the long side and Lyft the short side of a pair trade, investors can simply make a bet that UBER stock will continue to outperform LYFT stock.Since Sept. 1, UBER stock price is down just 7.5%. LYFT stock is down 19.3% in that time. Pair traders would have turned an 11.8% profit in that stretch rather than taking that that 7.5% Uber loss.Even if you're a Lyft bull over Uber, I'd still recommend taking this pair trade approach. Yes, it eats into profits if both stocks rise. But there is simply too much risk to go all in on either of the ridesharing stocks at this point.By picking a winner and playing it against its rival, investors are eliminating much of the risk associated with whether or not ridesharing will ever be a business model that works in the long-term.As of this writing, Wayne Duggan did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Beverage Stocks to Buy Now * 10 Groundbreaking Technologies Created by Universities * 5 Semiconductor Stocks Worth Your Time The post A Pair Trade With Lyft Is the Only Safe Way to Buy Uber Stock appeared first on InvestorPlace.
Uber Technologies Inc and Lyft have declined to appear at a hearing on Wednesday on ride-hailing industry issues, the chairman of the U.S. House of Representatives panel said, urging them to reconsider. "That is unacceptable," Representative Peter DeFazio told the company's chief executives in letters dated Monday. DeFazio said the House Transportation and Infrastructure Committee held numerous conversations with the companies' staff over the last few weeks, and "strongly urged" the companies to take part in the hearing.
Lyft has expanded its healthcare division recently, and this month Lyft is providing free rides to and from breast cancer screenings in cities like Chicago, New York City, and Houston. Yahoo Finance’s Dan Roberts and Kristen Myers discuss with Lyft's VP of Heathcare Megan Callahan.