Re:A downtick is coming for online advertising
by c0balt on Thursday April 21, 2022 @01:57AM
(#31106415)
Uber afaik runs at a relative high loss at the moment. You'll find a bunch of articles on this topic by searching for their last quarters report.
As far as I understandincrease in interest rates could make them running at a profit hard/ very unlikely in the future because covering high-interest loans will become hard. Further, it potentially could limit their cashflow, which impacts growth etc.
Many other factors, such as new investemnts or a decrease in individual travel, could influence this too of course. Though for a growth-centric company a limit on credit seems to be one of the harshest limitations.
Re:A downtick is coming for online advertising
by weatherlite on Thursday April 21, 2022 @04:15AM
(#31107064)
Also, high interest rate means investors can invest by buying bonds (and earning the interest) instead of investing in high risk growth companies. It's basically bad for stocks in general and particularly for growth stocks.
Re:A downtick is coming for online advertising
by lordnacho on Thursday April 21, 2022 @02:44AM
(#31106621)
The higher interest rates are, the more income in the future is discounted. If you assign any income to them in the future you need to assign less, but their costs are immediate.
Re:A downtick is coming for online advertising
by ehnto on Thursday April 21, 2022 @01:06AM
(#31106179)
I don't think you need anything to expose Uber, I can't believe they still run at all. 20billion in loss and no end in sight, they've failed to create a moat and they've failed to dethrone the taxi industry.
Also question: Why would high interest rates expose Uber etc?