[Seeking Alpha] Uber Is Not The Next Amazon And Is Not Worth $60 Billion

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Summary Uber has a significant cash problem, suffers high interest rates, and lacks a clear plan.

The underlying growth and future potential profitability do not justify the stock’s current valuation.

CEO’s statement and the company’s aspiration to become the next Amazon fall short with reality.

I am bearish on Uber.

The past two-month rally has doubled Uber’s (UBER) stock, which, in my view, is impossible to justify. Even at its 52-week low a little under 14$/share, I felt that its valuation is absurd, let alone at its current $34/share. Investors are pricing Uber under the impression that it’s going to be the next Amazon (AMZN), as stated multiple times. Uber’s CEO Dara Khosrowshahi has previously compared the company’s business model with that of Amazon. By the end of the article, I hope that it will be clear why this is not the case, and why the stock is not worth $60 billion.

In this article, I will discuss:

Uber’s cash burn rate and its impact on debt and equity The company’s lack of a clear strategy The absence of exciting growth The reason the stock’s current valuation is unreasonable Conclusion why the company is not the next Amazon


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