Ride-sharing company Uber went public and (yawn) … bombed. No surprise. They just don’t make IPOs like they used to.
Back in the mid to late 1990s there were many public offerings. Yes, some were questionable. But many were solid companies making their splash on the public markets. Fledglings. Their valuations were WITHIN REACH of everyday investors to enjoy the upside.
Yet today’s public stock market is really a market of LAST RESORT where the venture and private equity fund investors look to cash out, leaving the burden of an often overvalued company in the hands of the public, bloated, obese whales floundering on the polluted beaches of the NYSE and NASDAQ.
It’s comical that Uber’s CEO tries to explain away how Uber is just like Amazon or Facebook and somehow is misunderstood now that it’s public. That over the long haul Uber will follow the same path.
First of all, Amazon went public at well under $500 million. That left plenty of upside for mom and pop investors. I know because I was the first analyst (before its bankers even) to recommend AMZN way before Wall Street knew the boring old book site could be anything but a boring old book site.