Arturo Estrella has a message for recession naysayers: It could hit sooner than you think.Marketsread more
Salesforce released its first earnings report since its $15.3 billion acquisition of Tableau Software, the company's largest deal ever.Technologyread more
Fed Chairman Jerome Powell faces the tough challenge of presenting a unified voice on Fed policy from the most divided Fed in years.Market Insiderread more
VMware is following through on its proposal to buy Pivotal, a fellow Dell subsidiary, and expanding into cybersecurity with the acquisition of Carbon Black.Technologyread more
Google says it shut down hundreds of YouTube channels tied to misinformation around the Hong Kong protests.Technologyread more
It is a rare scenario where long-term interest rates suddenly fall below short-term interest rates.Real Estateread more
Investors are rushing to get a piece of its privately held rival Impossible Foods before it goes public, according to the Wall Street Journal.Food & Beverageread more
Weisler has been CEO at the company since 2015 when it split from HPE.Technologyread more
Gap Inc.'s fiscal second-quarter earnings topped analysts' estimates but sales missed. Same-store sales dropped 4% during the period, worse than expected.Retailread more
The deal adds the independent studio with preschool brands such as Peppa Pig to the U.S. company known for Nerf and Power Rangers.Entertainmentread more
Dallas Fed President Robert Kaplan would like to avoid additional stimulus but is keeping an "open mind."The Fedread more
Uber could go public at a stock price that would make it more valuable than some of the best-known names in the S&P 500.
The ride-hailing company plans to list shares between $44 and $50 in its upcoming initial public offering, several news outlets reported Thursday, citing people familiar with the matter. That would value the company at as high as $90 billion when it lists on the New York Stock Exchange, according to a Bloomberg report.
The eye-popping figure would make it more valuable than S&P juggernauts like DowDuPont, General Electric and Caterpillar, according to data from Finviz.com. It would also top Morgan Stanley and BlackRock, with market capitalizations of $81 billion and $74 billion, respectively.
Market capitalization, or "market cap," is the total dollar amount of a company's outstanding shares, which can be calculated by multiplying the firm's outstanding shares by the price of one share.
Uber is different from its potential market-cap peers in a key way — it's not making money.
The San Francisco-based start-up has been mounting billion-dollar losses ahead of its market debut. Its adjusted losses totaled $1.85 billion in 2018, according to its initial IPO prospectus. Those losses slowed from 2017, when Uber lost $2.6 billion. The company increased its revenue to $11.3 billion, up 43 percent year over year.
Most tech companies are not known for making money ahead of public offerings. Lyft, which went public in April, had a loss of $911 million on $2.1 billion in revenue last year. Twitter was losing money when it listed on the New York Stock Exchange in 2013. Snap, Spotify and SurveyMonkey — which all listed in 2018 — were also bleeding money.
Market valuation expert Aswath Damodaran has said the recent totals are far too high — or as he put it, "scary."
"I'm a little scared of Uber at $100 billion," the NYU Stern professor told CNBC. "I think both Lyft and Uber are struggling with a way to convert revenue growth into profits. So you are paying $100 billion for a company that still doesn't have a viable business model. That's scary."