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Here Is Why Uber Appears A Healthy Bet For Investors Despite $708 Million Loss

Here Is Why Uber Appears A Healthy Bet For Investors Despite $708 Million Loss

Uber’s financial problems do not appear to cut short anytime soon as the company cited a loss of $708 million for the first three months of the year. The loss was associated with the transportation network juggernaut’s search for a chief financial officer.

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The loss looks to be huge for its brand’s loyal customers. However, for investors, the loss recorded is commendable. An early Uber investor Jason Calacanis, congratulated the company on social media website, Twitter for continuing to expand its revenue and reducing its loss from $991 million in previous quarter. Their political consultant and investor, Bradley Tusk suggested that the trend appears to be good and the losses are down despite their significant investment across the world. It seems that this response is owed to the present mentality at Silicon Valley. Companies losing billions of dollars every year is not necessarily going to have a bad impact, if the business is reckoned to have potential for sales growth and can reflect decent progress in trying to reduce its losses with time.

Previously, Twitter had a robust public market debut in 2013 without tapping profit before. On the other hand, Snap is still trading above its IPO price after experiencing a loss of $2.2 billion in first quarter as a public company. Moreover, Tesla became the most valuable car company in America despite its need to raise more finance as it loses money.

It appears too that investors are not pulling out finance and support for the company despite the losses, which makes the company a lucrative offer for investment. The example of Amazon fits the situation as the retail behemoth remained unprofitable for its first two decades as CEO Jeff Bezos preferred to keep the prices low for customers and reinvest earning to new product initiatives. Ultimately, the company was reached $100 billion in annual sales for the first time and has been now profitable for eight consecutive quarters.

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