Should You Invest in Uber? Uber IPO Valuation, Share Price, Predictions and Long-Term Forecast

Lyft (LYFT) IPO might have gained a massive momentum having been the first out of two well-known ridesharing companies to go public in 2019, however, Uber IPO is being eagerly expected as one of the biggest IPOs in the market for the period of the last decade. Uber IPO was meant to be the biggest IPO of 2019, altogether with being announced as the biggest IPO since Alibaba (BABA) and Facebook (FB).

At the opening sale that started on Thursday, May 9th, Uber started at the price of 45$, soon going down below the initial price and touching 41$ per share at the closing.

Many analysts expected to see Uber blooming as based on evaluation, Uber was supposed to be the biggest IPO since Facebook in 2012 and Alibaba in 2014.

Lyft had a similar destiny, Uber’s ridesharing competitor that went public at the end of March 2019, dropping from the starting share price of 72$ and ending at 51$ over the course of 5 weeks.

While many analysts suggested that Uber IPO was a definite buy, setting the share price above Uber’s share price target between 47$ and 55$, it appears that a few skeptics who suggested that Uber might be in for a rocky ride based on Lyft (LYFT) experience.

Uber IPO: Should You Invest in Uber in 2019?

While investors consider the IPO to be too expansive, the main reason why Uber decided to lower their expectations when it comes to estimates is the plan to avoid a potential disaster that could take place with an overpriced IPO.

According to the company’s inside sources, Uber should price their shares between 48$ and 58$ per share, planning on raising around 10 billion dollars with the initial sale.

Uber should represent a rather successful IPO as the hype around this “centa-unicorn” might as well be more than justified, expecting to raise the targeted amount in the initial public offer.

What is more likely to make Uber’s IPO a success is the fact that the company is holding a greater market share in the ridesharing sector, alongside the fact that Uber has a history of positive revenue growth.  

Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.