5 ms·
> Uber complicates the analysis somewhat. Its third-quarter operating loss is estimated to be $4.96 billion. Yes, you read that right. The figure accounts for c
by Sphax 7y ago
> Uber complicates the analysis somewhat. Its third-quarter operating loss is estimated to be $4.96 billion. Yes, you read that right. The figure accounts for costs related to the initial public offering
Not familiar with all this, can someone ELI5 what are the "costs related to the initial public offering" ?
- H8crilA 7y agoYou have to pay the investment banks for underwriting, pay the stock exchange for listing, pay for the "roadshow", probably have some additional labor costs on your side and probably some other costs that I'm not aware of. Why do you think investment bankers paddle IPOs so much? Like sure, they take underwriting risks, but they also set the IPO price, so they control the demand. In other words, imagine if you have 100 pieces of gold. I come to you and tell you: I guarantee to sell this gold for you. You don't know the price until (a day before) I sell it. You still have to pay for my services.
- yes_man 7y agohttps://abcnews.go.com/Business/uber-fires-400-people-marketing-team-restructuring-lyft/story?id=64653082 https://abcnews.go.com/Business/uber-fires-400-people-market... At least they seem to have had a lot of marketing folk that were laid off shortly after the IPO
- kgwgk 7y agoThe article mentions Lyft included similar costs last quarter and this is what they said: "Net loss for Q1 includes $894 million of stock-based compensation and related payroll tax expenses, primarily due to RSU expense recognition in connection with our initial public offering."