by (Dan here…Lifted from comments at Spencer’s SP 500 PE) PGL comments: 1. It is strike day for Lyft and Uber. Uber’s IPO is estimated to be at billion which strikes me as way overpriced. Why? Net revenue is only .9 billion whereas operating costs are billion for the latest reported year. Their net revenue is 7.5 times that of Lyft. Lyft’s operating costs turn out to be 170% of its net revenues. Interestingly both companies have net revenues that are 23% of gross billing. Let’s put it this way. If your driver charges you for a ride, he keeps only .70 even though its is his car, his gasoline, and he is an independent contractor getting no wages or fringe benefits. If this strike works – the financials for these two companies will go from
Topics:
Dan Crawford considers the following as important: US/Global Economics
This could be interesting, too:
Bill Haskell writes From the Middle Out and Bottom Up
Bill Haskell writes US-China Decoupling
Ken Melvin writes Public vs Private Wealth – Breaking Free
NewDealdemocrat writes New Deal democrats Weekly Indicators for December 9-13
(Dan here…Lifted from comments at Spencer’s SP 500 PE)
PGL comments:
1.
It is strike day for Lyft and Uber. Uber’s IPO is estimated to be at $90 billion which strikes me as way overpriced. Why? Net revenue is only $7.9 billion whereas operating costs are $12 billion for the latest reported year. Their net revenue is 7.5 times that of Lyft. Lyft’s operating costs turn out to be 170% of its net revenues.
Interestingly both companies have net revenues that are 23% of gross billing. Let’s put it this way. If your driver charges you $10 for a ride, he keeps only $7.70 even though its is his car, his gasoline, and he is an independent contractor getting no wages or fringe benefits.
If this strike works – the financials for these two companies will go from dreadful to just plain absurd.
2.
Lyft had its IPO on March 1 this year. Suppose you had purchased 100 shares:
https://finance.yahoo.com/quote/LYFT
You’d be out $2300 by now. Keep this up and you can be a great business guru like Donald Trump was!