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As it turns out, if you ignore all of the ways it loses money, Uber makes money
by alexb_ 4y ago
As it turns out, if you ignore all of the ways it loses money, Uber makes money
- yywwbbn 4y agoBerkshire Hathaway suffered an 30+ billion loss just because Apple’s stock price declined. Neither company is losing money and both are highly cashflow positive.
- smcl 4y agoBerkshire Hathaway has been incredibly profitable over its lifetime though. Uber has been incredibly unprofitable throughout its existence
- yywwbbn 4y agoMy point was that while they are suffering huge losses this year they are actually doing fine. Seems the situation is similar with Uber, just that they were unlucky to become cash flow positive at the same time the market went down significantly.
- malfist 4y agoMan, I wish I could go to the gas station and tell the attendant I'm going to pay them what gas should be worth if you ignore all the shenanigans in the middle east.
- lazide 4y agoUber, as much as I dislike them, seems to be cash flow positive. So it’s more like ‘well shit, my stocks are tanking but I got a raise at work that more than offsets any cost of living increases’. No problems paying for gas, but year over year balance sheet is all in the red.
- CSMastermind 4y agoIf I understand OP correctly then Uber is in fact making money, they just have some depreciating assets on their books. It's like if your net wealth went down this year because your 401k declined. That doesn't mean that you're broke or even poorly managing your finances. You can have a positive cash flow (budgeting and living within your means) while still having your overall net worth decrease.
- _ea1k 4y agoIts more like, ignoring the fact that they took in more $$ in revenue than they spent in expenses, they lost money. Cash flow positive is an important milestone. Whether its sustainable is the real question.
- graeme 4y agoYou’re mixing up stocks and flows. Uber had the equivalent of a worker in the following situation: * their salary goes up. They can now cover all of their living expenses + save * the value of their stock portfolio goes down Are they poorer? Yes, on paper. But they aren’t losing money, defined as their living expenses costing more than their salary. In terms of salary vs. expenses they are doin great Buffett has long decried measuring business performance based on fluctuations in value of holdings