What is Uber's valuation? 6 companies you know that aren't as valuable
Ride-sharing giant Uber began public trading on Friday, seeking a valuation that far exceeds some of the business world’s most recognizable companies, even after the tech giant acknowledged that it may never become profitable.
Uber priced its initial public offering at $45 per share this week, which correlates to a valuation of roughly $82 billion. Shares began trading publicly at $42 per share, which values the company at approximately $77 billion.
While the first public trades were below initial estimates, which pegged Uber’s market capitalization as high as $120 billion, it still ranks as the largest IPO in recent memory.
The company’s future is far from certain. Uber disclosed in its S-1 filing that it spent $14.3 billion in 2018 and booked a $1.8 billion loss, excluding some transactions. While revenue grew 42 percent to $11.3 billion in 2018, Uber warned that its expenses will grow in the coming years.
“We expect our operating expenses to increase significantly in the foreseeable future, and we may not achieve profitability,” the company said.
Concerns about profitability have weighed on Uber rival Lyft’s shares since its debut in March. The company’s stock surged in early trading but has declined considerably in recent weeks.
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Still, Uber debuted at a higher valuation than many stable companies that already turned profits. Fox Business breaks down some of those companies below.
Morgan Stanley -- $77.3 billion
FILE - This March 1, 2017, file photo shows the Morgan Stanley headquarters in New York. Morgan Stanley reports earnings Tuesday, Oct. 16, 2018. (AP Photo/Mark Lennihan, File) (AP)
The decades-old investment bank reported net revenue of $40.1 billion and net income of $8.7 billion in fiscal 2018.
Goldman Sachs -- $73.2 billion
FILE - In this Dec. 13, 2016, file photo, the logo for Goldman Sachs appears above a trading post on the floor of the New York Stock Exchange. The Goldman Sachs Group Inc. reports earnings Tuesday, Oct. 16, 2018. (AP Photo/Richard Drew, File) (AP)
While the investment bank’s profits have slowed in recent quarters, Goldman Sachs posted net revenue of $36.62 billion and net earnings of $10.46 billion in fiscal 2018.
Tesla -- $41.3 billion
FILE PHOTO: A Tesla sales and service center is shown in Costa Mesa, California, U.S., June 28, 2018. REUTERS/Mike Blake/File Photo (Reuters)
Like Uber, Elon Musk’s upstart electric car maker is a Silicon Valley darling that has drawn unprecedented scrutiny since its launch. Tesla has struggled to maintain profitability in recent quarters as it invests in the rollout of its flagship Model 3 sedan, its first attempt at a mass market vehicle.
Ford -- $40.8 billion
Founded in 1903, Ford is one of the country’s most venerated automakers. The company reported revenue of $40.3 billion and profits of $1.2 billion in its most recent fiscal quarter, ahead of Wall Street’s projections.
Twitter -- $29.4 billion
MELBOURNE, AUSTRALIA - APRIL 11: (AUSTRALIA OUT) Jack Dorsey, co-founder and CEO of Square and Twitter, poses for a portrait at Black Velvet Espresso on April 11, 2016 in Melbourne, Australia. (Photo by Paul Jeffers/Fairfax Media via Getty Images)
The social media giant has a large base of users, but has struggled to deliver consistent results to shareholders since going public. Twitter has also dealt with criticism from President Trump over alleged political bias on its platform.
Lyft -- $15.5 billion
Lyft co-founders John Zimmer, front third from left, and Logan Green, front third from right, cheer as they as they ring a ceremonial opening bell in Los Angeles, Friday, March 29, 2019. On Friday the San Francisco company's stock will begin trading
Uber’s chief rival in the ride-share sector debuted in an IPO that valued the company at $24 billion. However, shares have struggled since March amid concerns about its ability to become profitable.