Uber Growth Is Gone, Where Is The Value? by Enertuition

Summary

• Uber growth is slowing down.
• Uber losses are astronomical especially considering the employee stock options compensation.
• With low growth and massive losses, we believe the Company has about a 80% downside.
• This idea was discussed in more depth with members of my private investing community, Beyond The Hype. Start your free trial today »

We are no fans of Uber (UBER) business model and wrote recently that the Company has about a 80% downside. Here is a no nonsense update with our take on the Uber Q2 results.

The Company is attracting more customers to the platform (all images below from earnings call slides)

And, facilitating more trips than ever.

But, the fancifully adjusted net revenue growth continues to slow down dramatically.

At 12%, how is this a growth company again?

May be the fancifully adjusted core platform net revenue growth is better?

Not really! That has now dipped to 7%.

How is this a growth company again?

May be, profitability comes by the time growth slows down right?

Nope.

Unadjusted earnings were far worse. Those counted employee stock compensation expense. Is that a real expense?

...Read the Full Article On Seeking Alpha

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