The shares of Uber (NYSE:UBER) continue to bleed after the ride-sharing behemoth reported more than $1 bln in quarterly losses. At press time, the company's stock is sitting at $28.23, down more than 30 percent from its IPO price.
According to CNBC, Uber's loss in Q3 amounted to a whopping $1.16 bln. However, there is always a silver lining -- financial analysts predicted a $1.45 bln loss and better-than-expected revenues ($3.8 bln vs. estimated $3.4 bln).
Like a lot of Silicon Valley unicorns, Uber remains unprofitable. Its path to profitability was seen as a huge question market ahead of the long-awaited IPO that took place back in May (the same applies to its competitor Lift who went public a tad earlier). However, CEO Dara Khosrowshahi is certain that Uber will be able to turn a profit in 2021.
“We know there is the expectation of profitability, and we expect to deliver for 2021,” Khosrowshahi told CNBC.
There is a good chance that the aforementioned sell-off will continue given that Uber's stock lockup will expire on Nov. 6. That means that 97 percent of its shares outstanding during the long-anticipated IPO will become eligible for sale.
Notably, SoftBank, which is helmed by Japanese billionaire Masayoshi Son holds a whopping 15 percent stake in the company after winning a tender in 2017.
The company's valuation has dropped below $50 bln (a far cry from $68 bln it was worth four years ago), which made it an underwhelming investment. It remains to be seen what SoftBank's next move will be.