Investing In Uber Is The Worst Thing You Can Do With Your Money In 2019

Uber’s IPO is the biggest IPO since Facebook (FB) went public in 2012.

It marks the first time individual investors can buy this beloved company.

IPOs carry a special allure. Investors dream of “getting in on the ground floor” and riding the stock to 20X–30X profits.

But collecting profits of 20X or better is possible if you identify disruptive stocks early on.

UBER is certainly disruptive. But as I’ll show you, it’s a horrible investment.

Uber Burns More Cash than Any Company I’ve Ever Seen

It is dangerously unprofitable.

Its IPO documents show it lost $1 billion on $3 billion in sales in just the past three months.

Now some might say: "Stephen, it's no big deal that Uber makes no money. Amazon made little profit for its first couple of years and it’s been an incredible investment. Its stock has soared 100,000% since its IPO. I want to get in on the ground floor of Uber like many did with Amazon!"

It’s true that early investors in Amazon (AMZN) got rich. It’s also true that Amazon lost money in its first seven years of business. From 1996 to 2002, it burned through around $3 billion.

The thing is, Uber has lost more money in the past nine months than Amazon did in its first seven years!

And Uber isn’t a “new” company.

You can forgive young startups for sacrificing profits for growth. Uber has been around for a decade and is still nowhere near profitability.

Another Popular Argument for Buying Uber Stock

It goes like this:

Uber will be among the biggest IPOs since Facebook… and Facebook’s stock has shot up 450% since 2012!”

Facebook is one of the most efficient cash-generating machines America has ever seen.

It makes money selling online ads, which is an extremely profitable business.

At its peak, Facebook was turning $0.50 on every dollar of sales into pure profit. That is off-the-charts incredible. It’s nearly unheard of for a company as big as Facebook.

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