Uber’s IPO is released this week, and it’s going to be huge. In fact, in terms of IPOs, it’s set to be one of the largest in history. But how much will Uber’s share price be, how can I trade it and when will it go live on the market? Here’s everything you need to know about Uber’s IPO.
What is Uber?
A good place to start is with the company itself. Created in San Francisco in 2009, the idea behind Uber (or UberCab as it was then known) came while founders Travis Kalanick and Garrett Camp were unable to get a taxi in Paris. The service offers a quick and efficient means for customers to order taxis via a smartphone app. They’ve since expanded operations into the food delivery market with UberEats and are also exploring autonomous vehicles. Uber has completed well over 10 billion trips in more than 600 cities across the world.
When is Uber’s IPO?
Uber is set to be listed on the NYSE on Friday 10 May.
Why is Uber going public now?
The simple answer is that it seems like a logical phase for a company that has been growing at an exponential rate over the last decade. A certain prestige is assigned to public companies and Uber’s stature definitely warrants a public status. Furthermore, a significant amount of capital can (and will) be raised with the IPO.
Founder and former CEO Kalanick was very apposed to becoming a public company, but since his departure in 2017, his successor, Dara Khosrowshahi, has been a notable advocate of the move. Khosrowshahi believes the firm already experiences many of the negatives of being a public company and none of the benefits.
Their IPO also coincides somewhat with their rivals Lyft’s. Both filed to go public in late 2018, but Lyft won the race to hit the markets.
What name will Uber trade under?
Uber will trade under the name ‘UBER’ on the stock market.
How many shares will Uber offer?
Uber is offering a total of 180 million in shares for its IPO.
How much will Uber’s share price be?
Uber is expected to trade between $44-50.
What is Uber’s valuation?
Based on their IPO share price of $50, Uber is hoping to raise $91.51 billion. The lower-end valuation will be around the $80-billion mark.
How can I trade Uber?
You can trade Uber on our award-winning TraderPro platform. Uber will be available to trade as soon as it hits the markets, so you can be there right from the start.
To sign up, all you need to do is complete a brief three-page form and suitability questionnaire, so you could be trading in a matter of minutes. Sign up now >
Why is TraderPro the best platform to trade Uber?
TraderPro is a great platform for any trader to trade Uber. Its instant execution means you won’t fall victim to price slippage. The array of risk management and analytical tools, as well as technical indicators ensure you have the utensils to spot every trend and peak – while also being able to mitigate against losses.
In 2019 alone, TraderPro has secured many awards for its usability, functionality and all-round performance.
Find out more about TraderPro’s features.
Should I trade Uber long or short?
A lot of issues currently surround Uber, none more prominent than the worldwide strikes by drivers demanding higher pay, more employee benefits and an increase in transparency from executives down to themselves.
Another major issue is that Uber, despite its impressive revenue figures, is actually losing an incredibly amount of money. This is down to the prioritising of growth over profit, which is a typical business characteristic of such a unicorn company.
Ultimately, whether you trade Uber long or short will depend on your confidence in the company, and whether you believe its exploration into self-driving cars and food delivery will be successful, as well as if it can regain stability and control of its rideshare operations.