I'm not sure what's going w/these companies and how they dropped the ball but the stock appears to me to be undervalued. Was expecting a moderate uptrend post IPO for both but they're doing the opposite. The industry potential should be there so wonder about management. Thoughts?
I went short uber in options on thursday, it dropped 2.5% friday. We will be hitting new lows before it goes back up. I wouldnt say its "undervalued" because they lost 5billion last quarter and their business model isnt stable or profitable.
Think in terms of “Economic moats” or some barrier to entry into the company’s market by a competitor. The ride sharing industry is easy to get into, does not require specialized employee training, and some of their potential customers are price sensitive with public transportation alternatives. There are companies out there that have much better prospects such as companies with solid management involved in AI.
I wouldn’t poo poo the big companies like GOOG, AMZN, and GE because in some areas of technology, large economies of scale are necessary to research, develop, and bring certain new technologies to market. I mention GE because several of their subsidiaries would benefit greatly from AI such as advanced robotics, advanced materials, and AI designed manufacturing processes. For ideas on high potential startups, I would look for key employees leaving the big technology companies as well as prominent University students. Although reading technical and scientific journals would help identify ideas being investigated and the key people associated with those ideas, actively participating in related blogs and events would likely yield the most in-depth information. I have a friend who was involved in the technology field that found great investment ideas this way.