Happy Monday, I hope you all had a great holiday weekend!
Today, we are looking at $UBER sitting pretty at $32 a share. It just announced its $2.65 billion deal with Postmates, which I think is a needed deal for that industry and both of the companies. The deal has Uber’s stock up 5% today. This deal will allow for the continued growth of Uber Eats, which at one point there was debate if Uber would even continue the unprofitable Uber Eats.
We are long on Uber because of the potential of Uber Eats, and our belief that its ride sharing business will continue to grow and eventually become profitable. Some keys to profitability include: “1) Better competitive dynamics leading to fewer subsidies; 2) long-term pricing power; 3) insurance leverage from a shift in business to non-ridesharing verticals and international; and 4) expense leverage as the company scales.” – CNBC
Also, check out $LMND. They are up 30% today after IPOing Thursday.