2Mon
Nice One! But then the questions are: why should Alphabet, once Waymo are out and working, keep $UBER on board and don't gain the moat by itself? And what if $TSLA wins the race on autonomous EV? There is some uncertainty on this stock and I would not be surprised if Funds start short-selling the stock in the future...
••
@GiCi you are right, a certain discount is justified for Uber, due to inherent uncertainties around the future. But imo in 9 out of 10 scenarios Uber is on top. And to the Waymo point specifically: As I see it it’s a win-win situation for both companies. Uber has the name, Waymo the technology. The scaling for Waymo can be facilitated through Uber. Uber gives the Waymo brand a sort of certification of quality I’d say. And yes if Tesla is on top Uber could potentially be screwed, but there’s no indication at the moment that Tesla can produce anything to challenge anyone frankly. Elon Musk throws promises after promises and keeps underdelivering. To sum up, I think it’s fair that Uber trades at some discount, but in most scenarios the company won’t die in the next 5 years, rather the opposite.
•
11
•2Mon
@MozartTrading I see your point and is a good One. But is rather a matter of economies of scale. Once Waymo can pick you up, it can also deliver your groceries. There is no need for branding. Amazon $AMZN paved the way. It is normal for good companies to take risks, Apple gave up entering in automotive, Alphabet moved away from oroducing its own smartphone, but they all had several different projects ongoing.
But in the case of $UBER , what's in the pipeline? I am not saying it will close, but I do feel bearish on this stock.
But in the case of $UBER , what's in the pipeline? I am not saying it will close, but I do feel bearish on this stock.
••
@GiCi you could be right and maybe Uber trades much lower in 10 years. You should monitor it for sure. But if and that’s a big if Uber were to become irrelevant, then that process takes time. I think before we would see the downfall of Uber we will still see a few years of very solid growth. And to be fair a P/E of 15 and possibly lower already prices in a lot of the risk imo. But we’ll see and I haven’t invested yet, but I’ll consider it at a pullback.
••
2Mon
@MozartTrading sure. Your entry point is quite safe, but I would update future plans if and when the stock gets there.
•
11
•