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Why Uber Stock Is Tanking.

everythingsuber

Well-Known Member
We know already but the public are just starting to wake up.

Dara not having a pathway to profit pretending to be cool with it doesn't help.


"Not helping matters was Khosrowshahi’s flippant attitude on the need for Uber to reach profitability sooner rather than later."
 

JohnnyBravo836

Well-Known Member
It will be interesting to see what happens to Lyft’s stock when the lock up period ends on August 19. Could portend what will happen to Uber’s stock at lock up expiration.
Maybe you can briefly explain the "lock up period" remark; I found this but it doesn't really clarify if for me.


I take it that there's a pool of stock that cannot be issued yet by Uber? Is that right? What would the reason for that be? You'll have to pardon my ignorance on this.
 

mbd

Well-Known Member
It will be interesting to see what happens to Lyft’s stock when the lock up period ends on August 19. Could portend what will happen to Uber’s stock at lock up expiration.
Lyft has less shares than Uber, less float with higher short%... insider selling most likely will not be a problem for them . so it can be more dangerous when going higher. Small company , and they can show growth better than Uber.
Lyft vs Uber stock performance from the lows- lyft has way better gains due to better growth rate, lower float and a higher short interest ( mm’s and crooks can manipulate the stock better)...
Total float Uber 1.1 billion shares vs 191 million for Lyft now.
 
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TemptingFate

Well-Known Member
Maybe you can briefly explain the "lock up period" remark; I found this but it doesn't really clarify if for me.


I take it that there's a pool of stock that cannot be issued yet by Uber? Is that right? What would the reason for that be? You'll have to pardon my ignorance on this.
Uber granted a billion dollars worth of stock and stock options to their employees as a reward for their service to the company. Executives got tens of millions of dollars worth, middle management got a few hundred thousand, regular employees got a few thousand.

The employees can't sell the stock until the lock-up period expires, 90 days after the date of the IPO. Some options can't be exercised until 6 months or 1 year after the IPO date. That's to prevent a massive dump of stock that will dilute the value and reduce the price.

The stock price is declining now because early investors are getting out while they can. This makes the employees even more eager to sell so they can cash out before the price goes even lower, causing the stock to crater in an avalanche of selling.

Where it ends, nobody knows. Until Uber can show a profit, there isn't much upside potential.
 

JohnnyBravo836

Well-Known Member
Uber granted a billion dollars worth of stock and stock options to their employees as a reward for their service to the company. Executives got tens of millions of dollars worth, middle management got a few hundred thousand, regular employees got a few thousand.

The employees can't sell the stock until the lock-up period expires, 90 days after the date of the IPO. Some options can't be exercised until 6 months or 1 year after the IPO date. That's to prevent a massive dump of stock that will dilute the value and reduce the price.

The stock price is declining now because early investors are getting out while they can. This makes the employees even more eager to sell so they can cash out before the price goes even lower, causing the stock to crater in an avalanche of selling.

Where it ends, nobody knows. Until Uber can show a profit, there isn't much upside potential.
Thanks -- got it. There was another recent thread here citing a news article that noted that, according to Uber, something like 3.9 billion of the 5.2 billion lost in the first quarter of this year were bonuses paid to employees. Presumably, those bonuses -- whatever form they might have taken -- are something distinct from the stock options that are under consideration here.
 

Alabama Lou

Well-Known Member
Yeah wait until bond yields drop past zero. Cant happen say you? Switzerland is into negative rates already.

When bond yields go below zero the bondholder no longer receives yield and instead now has to pay yield.

The yield curve is inverted today on 2's/10's and has historically been an indicator of impending recession.

Debt on balance sheets become the plague.
 

KevinH

Well-Known Member
Uber granted a billion dollars worth of stock and stock options to their employees as a reward for their service to the company. Executives got tens of millions of dollars worth, middle management got a few hundred thousand, regular employees got a few thousand.

The employees can't sell the stock until the lock-up period expires, 90 days after the date of the IPO. Some options can't be exercised until 6 months or 1 year after the IPO date. That's to prevent a massive dump of stock that will dilute the value and reduce the price.

The stock price is declining now because early investors are getting out while they can. This makes the employees even more eager to sell so they can cash out before the price goes even lower, causing the stock to crater in an avalanche of selling.

Where it ends, nobody knows. Until Uber can show a profit, there isn't much upside potential.
A couple of questions:
What percentage of employee stock grants were stock options rather than stock?
What was the buy price for the options? I read that the last funding round from Softbank was priced at $45.
 

kingcorey321

Well-Known Member
stop looking @ just 1 stock. almost every stock is down today . let it crash it needs to settle . if (spy) goes to 240 my market tracker . i suggest going long on every position . it will be a very good entry point to make some serious cash
here is why market is being slammed today . people are just shorting the positions
 

Taxi Driver in Arizona

Well-Known Member
stop looking @ just 1 stock. almost every stock is down today . let it crash it needs to settle . if (spy) goes to 240 my market tracker . i suggest going long on every position . it will be a very good entry point to make some serious cash
here is why market is being slammed today . people are just shorting the positions
The S&P 500 is down 2.37% and UBER is down 6.87%, so there's that.
 
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