According to a recent report, Uber is planning to reach the public through stock prices that will make it a big name than other companies in this sector.
On Thursday, a report came which revealed that the ride-providing company, Uber is planning to list its shares from $44 to $50, in next public offering. After this attempt, the value of the company will reach up to $90 billion.
According to recent data, the surprising figure is going to make this company more important than General Electric, Caterpillar and DowDuPont. It is expected that soon it will top BlackRock and Morgan Stanley which have a capitalization in the market of $74 billion and $81 billion.
Market cap or market capitalization is the overall company’s dollar amount outstanding shares which are calculated by the multiplication of outstanding shares of the company by one share price.
Uber is distinct from its strong rivals of market capitalizations on an important aspect that is Uber is not earning money.
In its initial public offering prospectus, it was mentioned that its start-up based in San Francisco was in extreme loss by the start of its arrival in the market. In the year 2018, its adjusted losses amounted to $1.85 billion.
In the year 2017, those losses had started when the ride-providing company noted a loss of $2.2 billion. After this loss, the company started to increase its revenue up to 43% every year which amounted to $11.3 billion.
Many of the tech companies are famous for public offerings instead of being famous for earning money. In April, Lyft came in the market and faced $911 million of loss on the revenue of $2.1 billion made last year. In 2017, Twitter has also lost money and in the year 2018, SurveyMonkey, Spotify, and Snap also faced heavy losses.
This year, Pinterest, Zoom, and Lyft are priced larger than their market value. The valuation done for these unicorns is for earning future profits.