A Blog by Jonathan Low

 

Dec 8, 2015

Uber's Market Value Is Now Higher Than 80% of the Companies In the S&P Index

In emotionally frothy capital markets it is not unusual for the value of newer companies to outweigh those of enterprises with significantly greater revenues and profits. The challenge is continuing to grow the business so that its operating results begin to justify the company's valuation.

Uber's performance is improving, as the following data suggest, but growth is relatively meaningless if an enterprise's strategy is not generating longer-term sustainable financial strength. Assuming, in this environment, that management and investors care whether or not there is a longer term. JL

Julie Verhage reports in Bloomberg:

Uber has increased actual U.S. gross revenue about 200 percent this year and is profitable in more than 80 cities around the world, and the number of U.S. trips completed this year has increased 250 percent compared with the same period last year.
Uber is raising more money, and the new valuation will make it larger than stalwarts of the S&P 500, including Dow Chemical, BlackRock, and Netflix.
Bloomberg's Eric Newcomer earlier reported that the car-booking startup is looking to raise as much as $2.1 billion in a financing round that would give it a valuation of $62.5 billion. For comparison, here are some of the companies that have lower market caps.
Companies that are still bigger include Apple, Starbucks, Nike, and Facebook.
Uber is one of the best-known and highest-valued members of the "unicorn club," the group of private companies with valuations higher than $1 billion. That club faced a big test last month when one of its most prominent members, the mobile payment company Square, went public. While other unicorns haven't fared so well on their initial public offerings, Square's IPO went rather smoothly despite a lowered valuation and pricing.
Still, no shortage of commentators are worried about the lofty valuations of unicorns and their ability to generate earnings sufficient to match expectations of their worth.
According to Newcomer's reporting, Uber has increased actual U.S. gross revenue about 200 percent this year and is profitable in more than 80 cities around the world, and the number of U.S. trips completed this year has increased 250 percent compared with the same period last year.

20 comments:

apkmabbu said...
This comment has been removed by the author.
Ainak.pk said...

Buy police sunglasses in Pakistan  from a wide variety of Sunglasses. Free home delivery across Pakistan. 
Ainak.pk gives you dynamic clarity and greater comfort, natural vision near, far and in between!

Satta King said...

Good information for beginner gamer of Satta matka , its need to be daily updated so they get more and more details.love toSattakingSatta Result

Men Sunglasses said...

Buy online sunglasses in Pakistan with a wide range of varieties and colors. We are also delivery product with free home delivery across Pakistan. Sunglassesco gives you top quality men and ladies sunglasses at an affordable price.

Jennifer James said...

Internet speed is one of the paramount driving factors when evaluating an internet service provider. It tells you about the time it takes to transfer a certain amount of data from the world wide web to your home devices and vice versa.

Anna Thomas said...

Much like the frothy capital markets, where perception often outweighs traditional metrics, fit out companies Dubai redefine the value of spaces.

new evolution inter deco said...

Just as in capital markets, where new companies can outshine established ones, in the realm of villa renovation Dubai, fresh design concepts often bring more value than older, revenue-rich properties. The allure of innovation and modern aesthetics can indeed be a game-changer.

ShopPoint said...

The perfect blend of style and functionality with our exquisite collection of Wallets for men. Designed to impress and built to last, these wallets are the ultimate accessory for the modern man who values quality and elegance in every detail.

The Genuine Leather said...

We are selling the best Genuine Leather Jackets for Men in the market with less price. We have unique and different styles of men leather jackets.

IGL Foreign Education Firm said...

In today’s competitive world, higher education abroad has become a dream for thousands of Pakistani students. However, the process can often feel complicated—choosing the right country, applying to universities, handling visa documentation, and adjusting to new environments. This is where IGL Foreign Education Firm steps in as your reliable partner. With years of experience, we are trusted as the best consultancy for abroad studies for international studies.

shashkay said...

At Shashkay.pk, we offer an exclusive collection of authentic dior sunglasses, bringing Parisian elegance to Pakistan. Each pair is a masterpiece of design, blending bold silhouettes with exquisite details. We provide a seamless shopping experience, ensuring every purchase is secure, and every product is genuine. Find your perfect pair and make a statement.

EB Logistics said...

EB Logistics specializes in fast and reliable air cargo services for imports from China to Pakistan. We manage every step of the process, from consolidation at our Chinese warehouses to swift customs clearance at Pakistani airports. Ideal for time-sensitive goods like electronics and e-commerce products, our air freight service ensures your cargo arrives safely and on schedule, empowering your business with speed and efficiency. Our transparent DDP shipping model guarantees no hidden costs.

german language said...

The IGL German Institute of German Language offers the premier a1 german language test preparation in Karachi. Our comprehensive course is meticulously designed to equip you with all the skills needed to excel in the Goethe A1 exam. Taught by our team of C1-certified instructors, the curriculum focuses on practical communication, fundamental grammar, and key vocabulary. We provide a supportive learning environment with regular mock exams and targeted practice to ensure you build the confidence necessary to achieve a high score and take the first step toward your goals in Germany.

Post a Comment