Aside the fact that Uber was one of the most anticipated IPOs of 2019, previously estimated between 90 and 100 billion dollars, Lyft (LYFT) and Uber (UBER), ridesharing pioneers, failed to meet investors’ expectation.
In the meanwhile, many are wondering why is that the case and why are Uber and Lyft stocks going down almost stubbornly.
One of the main reasons is said to be unprofitability that is often encountered in the tech sector, but what about Airbnb, WeWork and Palantir? Are these IPOs on the road to a downfall as well?
Why Uber and Lyft IPOs Failed? Can UBER and LYFT Take a Rebound?
Carter Mack from investment bank that brought Lyft and Uber to the public, claims that companies that are unprofitable invest more time into explaining how they would eventually be able to make profit.
On the other hand, Mack adds that the most probable reason why these ridesharing companies failed to trade above the starting position is most probably related to the fact that investors are looking to cut the time they need for collecting ROI.
In the meanwhile, analysts believe that the value of the ridesharing sector will eventually go in favor of Uber and Lyft.
How is Airbnb Expected to Perform with IPO?
Airbnb is valued at 35 billion dollars ahead of its IPO, while the company represents a tech unicorn focused on traveling and property rental industry. What differentiates Airbnb from other tech unicorns is the fact that Airbnb is able to turn in profit, also recording increase in listing on a global level.
How is Palantir Expected to Perform with IPO?
Valued between 20 billion and 40 billion dollars, Palantir could easily become the next big name in the IPO market of 2019. In the meanwhile, the company appears to be playing the IPO card cautiously, potentially postponing public offer for 2020.
Palantir is working with proprietary software and data sets, in addition to having the company expecting to become profitable already by the end of 2019
How is WeWork Expected to Perform with IPO?
WeWork can probably be described as “Airbnb of workspace”, so despite having difficulties with profitability, WeWork came to see IPO estimates topping 47 billion dollars as big players such as SoftBank are supporting WeWork.