Uber IPO: What You Need to Know

Market Foolery looks at Uber's IPO possibilities and how much the company is REALLY worth.

Jun 11, 2014 at 11:56AM

On Tuesday, host Chris Hill and Motley Fool Funds Analyst Bill Mann answer a tweet sent to them by Liam McCusker, asking about the value of Uber. McCusker asked, "Is Uber really worth $17 billion?"

Chris explained that the latest valuations indicate Uber might be worth even more -- CNBC and New York Times analyst Robert Sorkin believes that Uber may be undervalued at $18 billion. For the German buffs, Bill believes that Uber is worth uder $18 billion. As a private company, Bill notes that Uber's financial structure is still a mystery, but he concedes that $200 million in revenue last year is impressive. Yet, comparing $200 million and $18 billion just doesn't compute for Bill. For the company to actually be valued at $18 billion, Bill thinks it would be a miracle ... which means it's still possible.

Bill thinks that Uber has proven itself as a taxi company or a car-services platform, but not much more. When viewing the company, an investor needs to focus on what the company has achieved and explore all the other possibilities of what Uber wants to do as a call option. Furthermore, it's impossible for a CEO to understand the difficulties and pressures in taking a private company public, and Bill believes that it takes a strong type of CEO to push back on that pressure. Uber's CEO has yet to be tried. Chris parallels the move to becoming a new parent, because no matter how many books you read, the reality is far different than what you expected.

And that's just part of the reason Fool Funds doesn't participate in IPOs, Bill said. In response to why analysts are giving the company the benefit of the doubt, Bill explored how the benefits are an inefficient use of the capital.

In the end, Bill thinks that everyone is getting far too excited about Uber -- if investors look at more than just the possibilities and also examine the risks, Uber is still up in the air.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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