Underwriters Of Uber’s IPO Still Recommend Buying Despite The Deep Losses

The initial public offering that came from Uber this Tuesday was followed by its underwriters which have highly recommended buying Uber’s shares, despite all the losses the company has experienced so far.

It seems like how the quiet period has ended for Uber. It was caused by its IPO results that came from the last month. Yet, more than 15 banks have asked for analyst coverage of Uber for all those public listings. It all came positive except for the Citi, which gave a neutral rating.

It is believed how Uber still can benefit a lot from secular shifts which are related to sharing economy. Rides would be very helpful for that. Besides that, Freight and Eats can also bring benefits when talking about marketplace evolution in an efficient way and all those time-saving services that can be found.

What was the price of Uber’s stock? It counted $42.22, which is up for 2.4%. But, when we take a look from the statistics from May 9th, we can easily come to a conclusion about how the shares have dropped for more than 6%.

Why are then underwriters still recommending buying? They have described the situation related to Facebook. They say how Uber is still one of the strongest companies that will make a fortune from the Internet’s IPO. They also said how Facebook had more risks when it tried to turn to mobile than Uber has now.

Yet, facts are still facts. By the end of 2019, it is believed how Uber will lose more than $6 billion!

Some of the experts claim how Uber will benefit a lot when they decide to launch new seats for self-driving cars. We must admit how that would definitely be a great chance for this company to get back on the right track.

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.

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