Re:Ask HN: Are we heading for another recession?
by toomuchtodo on Tuesday October 01, 2019 @05:51PM
(#21131101)
> If Uber did that poorly, who else may be a trap?
Who isn’t profitable or has razor thin margins? Who is heavily levered up with debt? That’s how you find who will be naked when the ocean goes out.
Earlier this year, Uber IPO'd and raised $8.1 Billion in public money. It then _immediately_ lost $5.236 Billion in Q2. https://investor.uber.com/news-events/news/press-release-det...
Public investors are weary about giving more money to Silicon Valley startups because the public has already lost so much money this year on other bets.
Yes, "irrational exuberance" is going away today. But there are many, many companies that the public has bought into this year and last year, at HUGE valuations. But this only confirms what I believe to be the deflating of the new-tech bubble.
Uber is laying off staff and cutting costs. Future investors and future IPOs are "poisoned" due to how poorly Uber has done. Anyone else planning on IPOing in this environment is going is going to have more trouble.
The public is going to increase their scrutiny of future tech IPOs. If Uber did that poorly, who else may be a trap?