While it’s hard to imagine my readers don’t know about Uber (Uber Technologies, Inc.), here’s a definition I found on Google.com:

Uber Technologies, Inc. is an American multinational transportation network company offering services that include peer-to-peer ridesharing, ride service hailing, food delivery, and a bicycle-sharing system. The company is based in San Francisco and has operations in over 785 metropolitan areas worldwide.

Uber recently announced that, for its most recent quarter, it lost $5.2 billion, not exactly the results a company that recently went public in May 2019 would want to have to share with the world. Part of this loss included $3.9 billion in “stock-based compensation expenses” related to the IPO and an operating loss of $1.3 billion.

I also recall reading recently that Uber had laid off some 400 people in marketing. That seems like a huge number until I read further and learned that the departure of 400 people left Uber with a paltry 800 people in marketing. What can they possibly hope to accomplish with such a lean marketing staff? Kidding!

I’d avoid investing in Uber until such time as their execution control improves. They currently don’t have a price-to-earnings (P/E) ratio as earnings are below zero. With a current price of about $35 per share and earnings of zero, 35/0 is undefined. $35 a share at this point is highly speculative. Uber has a steep mountain to climb.

Photo Credit: Flickr by JamesWrigley

Thought for the week:

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” – Warren Buffet

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Dave Gardner

Dave Gardner is a management consultant, speaker, author, and blogger based in Silicon Valley. He's been in the front row for the birth and evolution of Silicon Valley, the innovation capital of the world. Since 1992, Dave Gardner focuses on making the complex simple around people, process and technology. Dave is the author of Mass Customization: An Enterprise-Wide Business Strategy - How Build to Order, Assemble to Order, Configure to Order, Make to Order, and Engineer to Order Manufacturers Increase Profits and Better Satisfy Customers.


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