New valuations provided by Wall Street banks have suggested that Uber is one of the most valuable American companies not listed on the stock exchange. According to the Wall Street Journal, valuations have been as high as $120 billion, which is almost double the valuation given two months ago when Toyota made a $500 million investment in the company.
Uber An IPO in 2019 is Highly Likely
In August, Uber was valued at $72 billion, based on an investment made by the Toyota Motor Corporation. Toyota will work closely with Uber to develop an autonomous vehicle program in North America.
At the time, the figure was highly impressive, and it had a lot of investors wondering if the company would go public before the end of 2018. While this no longer seems likely, it is possible that an IPO will be made next year. The company has made no secret of its intention to go public, with CEO Dara Khosrowshahi telling CNBC “I do think that we’re on track in 2019 for an IPO. Lots of things can happen in the world but we have a reasonable buffer as well, so I think we’re in a pretty good spot.”
The current valuation of $120 billion makes Uber one of the most valuable private companies in the United States. If an IPO were to be made and the valuation held true, then Uber would be worth more than the combined value of General Motors, Ford, and Fiat Chrysler.
Uber currently operates at a loss, but this is expected to change within the next three years. The company has invested heavily in new technologies and expansion of its services, so losses at this time in its development are expected.
The company generated $7.78 billion of revenue last year and is expected to increase that figure to at least $10 billion this year. Customer growth and increased operational efficiency are driving revenue improvements.
Should You Be Excited for a Potential IPO?
Most analysts believe that 2019 will be the year when Uber goes public. It’s the most well-known ride hailing company in the world with impressive brand power and global reach. This represents a completely unique type of company to invest in.
There’s no doubt that companies like Uber are important to the future of transportation. If you are looking to expand your portfolio next year with a stock that blends automotive, transportation, and tech, then an Uber IPO is something to look forward to.
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