Varney on the pros and cons of investing in the Uber IPO

Channel: Fox Business
Published: 05/10/2019 03:57 PM

Description
FBN's Stuart Varney says if you buy Uber stock you're buying into an idea, a revolution in transportation. FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms that impact both Main Street and Wall Street. Headquartered in New York — the ...



Transcript
This is uber day the day when ordinary people can invest in the biggest ride-sharing business of them all. If there you wish to do so, i'm gon na spell out the pros and cons, as i see them. First of all, if you buy uber stock, you are buying into an idea. You'Re buying into a revolution in transportation, use your phone to get a ride. What a concept uber is a disrupter they've upended, the taxi bu ...
iness and the whole idea of buying a car of your own if you buy ubers stock you're buying into what some, what sir come to be known as the gig economy. However, it's not all plain sailing. A revolutionary idea it doesnot necessarily translate into a profitable dynamic company for a start, uber's losing money, a lot of it. It lost a billion dollars in the first three months of this year. Its costs are rising. Drivers went on strike this week for higher pay. There'S pressure to make drivers regular employees with benefits rather than contract workers that would really change their business model and there's the threat of regulation like surcharges on fares or restrictions on what type of cars can be used and yes, uber's got competition. These are known as headwinds which investors face if they buy uber stock, but this is how capitalism works.

Somebody comes up with a good idea. They form a company andgo into business at some point. They want to bring in more money, so they can devant and develop and expand that's what uber is doing today. They'Ll raise about 8 billion dollars, the founders and early investors will be rich and you have the opportunity to buy in or stay out. It is your call.


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