Uber $1 Billion Loss

[Economy 52,861]

https://www.bnnbloomberg.ca/uber-beats-sales-estimates-while-losing-us-1b-in-a-quarter-1.1266457

 

Uber has reported a loss of $1 Billion in the first quarter of this year so far

 

Given revenue of a little under $3 Billion for the first 3 months that puts a loss margin of over 30% of revenue

 

The extremely poor financial results suggest the company is still focusing on growing at all costs to scoop up market share despite the debt load it must take on

 

Giants like Amazon and Netflix have used a simmilar strategy to far outspend their earnings hoping it pays off long term

[weed 78,994]

[Maleficent 6]

yes keep giving billions of dollars in investments to corporations while the average american has a hard time getting approved for a mortgage 

[Economy 52,861]

5 hours ago, Maleficent said:

yes keep giving billions of dollars in investments to corporations while the average american has a hard time getting approved for a mortgage 

I mean there's a reason for that. The bank wants their money back understandably

 

A corporation the size of Uber is less likely to default on debt payments than many of the low credit score households that don't get approved

 

Also banks don't typically finance most of this. Corporate borrowing is too large to be financed by banks alone

 

Most of the money comes from Corporate bonds that individual investors can buy

 

Actually even retirement funds tend to invest in corporate bonds. If you have an RSP or even just work and contribute to government retirement fund with your deductions, guaranteed a portion of your money was invested in Corporate debt

 

Corporate debt is good because it pays more interest than the garbage Government debt pays

 

US 10 year bonds for example only get you a sh*tty 2.2% per year interest right now