tag:blogger.com,1999:blog-4021655406620953887.post4451193333724125442..comments2023-09-15T03:29:21.552-04:00Comments on Transparent Traders: Uber stock is in crisis — here's the biggest problems right now $UBER Transparent Tradershttp://www.blogger.com/profile/05306442633125245146noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4021655406620953887.post-16775877979615390242019-11-07T07:45:49.218-05:002019-11-07T07:45:49.218-05:00Uber’s post-IPO share lockup period ended yesterda...Uber’s post-IPO share lockup period ended yesterday, exposing about 763 million tiny Ubers (about 44% of its outstanding shares) to the possibility of sale. Investors sent Uber stock to its lowest price ever. <br /><br />What’s a lockup period? When early shareholders and executives are prevented from selling in the immediate aftermath of a company’s IPO. Lockup expiration can cause selloffs, even if the listing was initially successful (see: Pinterest). <br /><br />Zoom out: Uber reported Q3 earnings on Monday. Revenue beat estimates, but bookings and user growth disappointed. Shares sank about 5% after hours Monday...and didn’t stop for the next two days. <br /><br />Worse could be in store—some investors may have held off selling their shares yesterday because the stock is already underwater. <br /><br />This means more trouble for SoftBank's Vision Fund, which holds a 16.3% stake in Uber. SoftBank reported its first quarterly loss in 14 years yesterday after a slew of writedowns, punctuated by WeWork. <br /><br />Bottom line: Uber investors aren’t in agreement over the company’s direction, particularly the role of the delivery service Uber Eats. Still, it remains a global leader in the industry.Transparent Tradershttps://www.blogger.com/profile/05306442633125245146noreply@blogger.com