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.
Advertisement
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.
Denys Serhiichuk
U.Today Editorial Team
Vladislav Sopov
Dan Burgin