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Jerod Harris | Fortune | Getty Images
Uber CEO, Dara Khosrowshahi, attends the Fortune Most Powerful Women's Summit in Laguna Niguel, California on October 3, 2018.
Uber could be listed on the stock market at a higher stock price than some of the S & P 500's best-known names.
Uber is very different from his potential market capitalization peers – he does not earn money.
The San Francisco-based start-up has accumulated losses in billions of dollars before its debut in the market. Its adjusted losses totaled $ 1.85 billion in 2018, according to its initial IPO prospectus. These losses have slowed since 2017, when Uber lost 2.2 billion dollars. The company's sales figure reached 11.3 billion, up 43% over the previous year.
Most tech companies are not famous for making money before public offers. Lyft, IPO in April, recorded a loss of $ 911 million on a $ 2.1 billion business last year. Twitter was losing money when it was listed on the New York Stock Exchange in 2013. Snap, Spotify and SurveyMonkey – all listed in 2018 – were also bleeding money.
Lyft, Zoom and Pinterest all have a higher price than their marketed range this year. The valuations of these technological unicorns are based on future earnings, as almost none of their businesses are profitable yet.
Aswath Damodaran, a market valuation expert, said recent totals were far too high – or, as he said, "scary".
"I'm a little scared of Uber at $ 100 billion," Professor Stern of CNU at CNBC told CNBC. "I think Lyft and Uber are both struggling to find a way to convert their revenue growth into profits, so you're paying $ 100 billion for a company that still does not have a viable business model." is scary. "
WATCH:
The IPO of Uber will be five times larger than the combined IPOs of Pinterest and Zoom
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