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I mean, let's be real here, is $42 really disappointing? Because from where I sit, this company is going to be bankrupt in short order.
by outside1234 8y ago
I mean, let's be real here, is $42 really disappointing? Because from where I sit, this company is going to be bankrupt in short order.
- shereadsthenews 8y agoIt's certainly disappointing for people who have been underpaid compared to industry salaries for the last several years based on their belief that their shares were worth more.
- aetherson 8y agoDoes Uber pay low salaries? This is the first I've heard of it.
- shereadsthenews 8y agoThe base salaries are comparable but the share comp, which is generally close to half of comp, was based on valuations that didn't pan out. Now that it's been marked to market it doesn't look great. Keep in mind that other tech companies have doubled their share price or better in the last four years.
- aetherson 8y agoUh, okay, but what you actually said was people were "underpaid compared to industry salaries." When you accept equity, you accept risk. I don't think that there's a terribly bright future for Uber, but the stock hasn't been a catastrophe so far, and all the other big stocks will have disappointing times too.
- shereadsthenews 8y agoIn the context of the individual it is useless to speak of average outcomes. Over the lifetime of Uber all other tech stocks have had a huge run. If you had a choice to work at Nvidia and you worked at Uber instead you left $5 million on the table.
- gojomo 8y agoI'll give you 10:1 odds Uber doesn't declare bankruptcy in the next 5 years.
- warp_factor 8y agoprobably not bankrupt, but they will basically become a small ride hailing company with high prices. This will result in their stock falling dramatically.
- gojomo 8y agoDefine 'dramatically', and by when you expect this will happen, and I'll offer you odds as well!
- warp_factor 8y agoIn 5 years I expect the MarketCap to be around 10B$ max. If Self Driving cars are a thing then even less than that. their customer base will be richer//business people ready to pay higher sustainable prices for rides.
- peripitea 8y agoIf you really believe this then you can probably make a healthy amount of money buying put options.
- marvin 8y ago5-year put options on Uber right now would probably cost more than the price of the stock, which would put you at less than even odds. I don't think you can get options yet, though. A 5-year short.....maybe? Will be interesting to see what the short interest and borrowing rate will be.
- gojomo 8y agoI'd be happy to bet you $100 that on May 10, 2024, Uber has a market cap higher than $10B. Let me know.