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Tag Archives: Lyft

SoftBank to Book Loss of up to $7 Billion on WeWork, Uber, Others, after Showering $1.7 Billion on Neumann and Hanging his Employees Out to Dry

Whatever the heck happens, and however many billions of other people’s money your outfit burns, just make sure you walk away a billionaire. SoftBank – the Japanese conglomerate that is the late-stage investor superstar behind imploded WeWork, bleeding Uber, and others – is planning to take a $5 billion to $7 billion write-down of its investments in these startups, sources told Bloomberg. From the last round of funding in January this year, when SoftBank invested $2 billion in WeWork,...

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When Was Peak-Insanity of the Unicorn-Startup Bubble That’s Now Imploding?

WeWork was just late to the defenestration party. Everyone – including infamously me – has been trying to pinpoint the exact moment when the magnificent startup-unicorn-bubble broke, and I mean not just broke but imploded spectacularly. All of the biggest upcoming IPOs were cancelled. All the biggest ones that got out the IPO window this year crashed and burned. And the $47-billion WeWork unicorn is now awaiting dismemberment or a bailout from Softbank after its IPO hopes were...

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IPOs Crash & Burn, Debris Hits Housing, Office Markets

Signs are now all over Silicon Valley and San Francisco. This is the transcript from my podcast last Sunday, THE WOLF STREET REPORT: OK, here’s a sobering thought. Some of the biggest IPOs in 2019 trade at record lows and all of the biggest IPOs have seen their shares plunge from their peaks. All of these companies have growing revenues but huge losses that in many cases are growing faster than revenues. But they still sport gigantic market valuations, meaning that there is a lot more...

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How Can a Company Lose $5.2 Billion on $3.2 Billion in Revenue? Uber Shows How

And rideshare revenue is stagnating. Uber’s losses have been legendary for years, ever since they were being leaked to the public while it was still a privately held company. But this takes the cake. Uber reported this evening that it had lost $5.24 billion in the quarter through June 30. The thing is, Uber reported revenues of only $3.2 billion. In other words, its net loss exceeded revenue by $2 billion. That takes some doing. Its $5.24 billion loss came on top of its $878 million...

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THE WOLF STREET REPORT: When the Music of the “Wealth Effect” Stops

OK, so we have a phenomenon here that has taken on historically huge proportions in the era of the Everything Bubble (12 minutes): Enjoy reading WOLF STREET and want to support it? Using ad blockers – I totally get why – but want to support the site? You can donate “beer money.” I appreciate it immensely. Click on the beer mug to find out how: Would you like to be notified via email when WOLF STREET publishes a new article? Sign up here.

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McArdle’s Confusion About Costs of Inputs

One of the best economic journalists in the United States is Megan McArdle of the Washington Post. That makes her error in a recent WaPo article all the more striking. Don Boudreaux at Cafe Hayek has pointed out the error. But I want to do my own analysis because it’s a more general error that I see people make and the first time I saw a friend make was when I was 20 and really starting to “get” economics. Coincidentally, the error my friend made was when we were...

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Nasdaq Drops 6.3% in 6 Days, as Uber & Lyft IPOs Turn into Colossal Flops. S&P 500 Chart Not Pretty

Russell 2000 back where it had first been in November 2017. This market, after a historic rally despite declining corporate earnings in the first quarter, was looking for a trigger, any trigger, and it found a trigger, or triggers. But the trade war cannot explain the colossal flops in the over-hyped IPO realm. The Nasdaq composite dropped 3.4% today. In the six trading days since its peak on May 3 (8,164), it has dropped 6.3%, after a historic surge of 32% from December 24 through May...

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Here We Go Again: Tech Bubble 2.0 but “This Time It’s Different”

Here we go again, another tech bubble is expanding like a supernova and the financial media is declaring (as it does during every bubble) “this time it’s different.” File Tech Bubble 2.0 under memories are getting shorter or this time is never different: The “Uber of dog-walkers” is worth a cool $1 billion pre-IPO. Or maybe it’s the AirBNB of dog-walkers, but who cares? Just as any company with no hope of profits skyrocketed once it put blockchain or crypto in its name...

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Lyft Shares Plunge 10% in 4 Hours from “Pop” to Close

IPO investors tried to unload while they could. Lyft started trading today as a public company. It had lost $911 million last year. Investors have been subsidizing every ride. Outside of burning the money that its investors have handed it, Lyft does not seem to have a sustainable business model. To reduce the burn rate, it has cut the pay of its drivers. And hundreds of those drivers were protesting and went on strike today in Los Angeles, San Diego, and San Francisco to draw attention...

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Fun on Friday: Dumb Politician Edition

When I was a kid, I thought people in elected offices were among the brightest and best. Then I grew up, started interacting with politicians and realized they are no smarter than anybody else. And in fact,  a lot of them are downright dumb.Well, I’ve got an Oklahoma lawmaker for you that fits neatly into the downright dumb category.Oklahoma state Rep. Merleyn Bell, a Democrat from Norman, wants to penalize people who use a successful private sector DUI prevention program to fund an...

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