Uber, Lyft and Pinterest prove that private investors are sucking up all the value

In 2016, Alex Mittal of FundersClub wrote that today’s top tech companies are raising gobs of private cash, “leaving the bulk of returns out of public investors’ reach.” These are the very people that benefit from companies who stay private longer while their valuations skyrocket, because they’re the early investors. Over the last two-plus years, public investors have gotten consumer brands with big names but few gains. There’s still little pressure for start-ups to change their approach because


In 2016, Alex Mittal of FundersClub wrote that today’s top tech companies are raising gobs of private cash, “leaving the bulk of returns out of public investors’ reach.” These are the very people that benefit from companies who stay private longer while their valuations skyrocket, because they’re the early investors. Over the last two-plus years, public investors have gotten consumer brands with big names but few gains. There’s still little pressure for start-ups to change their approach because
Uber, Lyft and Pinterest prove that private investors are sucking up all the value Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-18  Authors: ari levy
Keywords: news, cnbc, companies, pinterest, companies, gains, investors, uber, value, ipo, billion, sucking, prove, private, venture, capital, public, lyft


Uber, Lyft and Pinterest prove that private investors are sucking up all the value

Dara Khosrowshahi, chief executive officer of Uber Technologies Inc., speaks on a webcast during the company’s initial public offering (IPO) on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 10, 2019. Michael Nagle | Bloomberg | Getty Images

Nobody in Silicon Valley should be surprised by Uber’s disappointing IPO. Or Lyft’s. Experts have been predicting this type of performance for years. Marc Andreessen called “the effective death of the IPO” in 2014 and said that with high-flying tech companies staying private longer, “gains from the growth accrue to the private investor, not the public investor.” Fred Wilson of Union Square Ventures told CNBC the following year that these late-stage IPOs mean “all of the gains are captured among a very small cohort of people.” In 2016, Alex Mittal of FundersClub wrote that today’s top tech companies are raising gobs of private cash, “leaving the bulk of returns out of public investors’ reach.” These are the very people that benefit from companies who stay private longer while their valuations skyrocket, because they’re the early investors. They get to ride the valuation up from the millions to $10 billion, $20 billion or $50 billion and then sell their shares to the masses of public market investors who are thirsting for the next Amazon or Google. They were the ones warning us about the emerging Uber-Lyft problem. And they were right. Over the last two-plus years, public investors have gotten consumer brands with big names but few gains. Snap has lost about one-third of its value since its 2017 IPO, while Dropbox and Spotify are up just slightly from their debuts last year. Uber and Lyft have dropped. After falling 13% on Friday on a bad earnings report, Pinterest is back to where it was trading in its first few days in April. “Maybe we made a mistake in having these unicorns sucking in huge amounts of private capital and delaying their IPOs,” said Duncan Davidson, a partner at venture firm Bullpen Capital, in an interview this week. “Maybe we’d be better off having these puppies go public earlier like we used to.”

A good chunk of the capital at the later stage has come from firms like T. Rowe Price and Fidelity, who normally buy public stocks but moved into the private markets in recent years so as not miss out on all the value creation. Since they’re already shareholders it’s hard to get them to buy more when it’s time to take the company public. “A lot of the prime public investors you’d want in your stock after the IPO already own the stock,” said Iris Choi, a partner at early-stage venture firm Floodgate who previously worked in investment banking at Goldman Sachs. “What is their incentive to actually buy at the IPO?” Of course, it’s still too soon to come to any conclusions about where Uber, Lyft and others will be trading months or years down the line. Investors can point to Facebook’s miserable kickoff in May 2012, and the fact that it lost half its value over the next three months before rebounding. Now shareholders who bought in at the IPO and held have seen their investments quintuple. There was plenty of skepticism surrounding Google’s lofty valuation in 2004, but buy-and-holders are up 2,800%. However, if you’re banking on a similar result from this new class, consider two important factors: Facebook and Google are outliers.

They were profitable at the time of their IPOs.

‘Unit economics really do matter’

With the latest crop of consumer offerings, public investors are being asked to pick up where the venture community left off and continue to subsidize cash-burning growth while the companies seek to prove they can morph into sustainable long-term businesses. Investors are balking. “The big lesson everybody in Silicon Valley learned is unit economics really do matter,” Davidson said. So what happens from here? There’s still little pressure for start-ups to change their approach because private capital is so plentiful. SoftBank’s Vision Fund, which has poured billions into Uber, WeWork and other capital-heavy businesses, is only planning to get bigger. Venture fundraising hit a record $55.5 billion last year, according to the National Venture Capital Association, and those firms have to put their capital to work. In the first quarter of 2019, five “mega-funds” (over $500 million) closed, the NVCA said, and more prominent firms are in the process of raising $1 billion or more. These funds are increasingly willing to put some of their cash into secondaries, buying shares from founders who can lock in a portion of their riches while steering clear of quarterly earnings and the scrutiny of public markets. “Mega-funds are creating challenges with the oversupply of capital, and it’s reducing discipline in operating companies,” said Robert Mittendorf, who invests in health-tech companies at Norwest Venture Partners. “We forget out here that operating results are more important than the amount of capital raised. We should be applauding operating performance more.” It’s certainly not all gloom and doom. Enterprise software companies continue to reward public investors. Videoconferencing company Zoom, which is profitable, has more than doubled from its IPO price in April and has even generated substantial gains for investors who missed the initial pop. PagerDuty has also more than doubled, and Fastly, whose technology helps companies more quickly deliver online content, surged 50% in its debut on Friday.

Source: CNBC


Company: cnbc, Activity: cnbc, Date: 2019-05-18  Authors: ari levy
Keywords: news, cnbc, companies, pinterest, companies, gains, investors, uber, value, ipo, billion, sucking, prove, private, venture, capital, public, lyft


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Short seller says Beyond Meat hype is ‘beyond stupid,’ places bet against the shares

A notable short seller is roasting newly public Beyond Meat. Andrew Left of Citron Research took to Twitter Friday afternoon, saying the hype around the plant-based meat substitute company has sent its stock too high. “Most heavily traded retail stock on Robinhood, market cap now bigger than industry, and superior competitor coming to market soon.” Left, known for betting against Tesla and Valeant Pharmaceuticals, confirmed in an email to CNBC that he took a short position in Beyond Meat Friday.


A notable short seller is roasting newly public Beyond Meat. Andrew Left of Citron Research took to Twitter Friday afternoon, saying the hype around the plant-based meat substitute company has sent its stock too high. “Most heavily traded retail stock on Robinhood, market cap now bigger than industry, and superior competitor coming to market soon.” Left, known for betting against Tesla and Valeant Pharmaceuticals, confirmed in an email to CNBC that he took a short position in Beyond Meat Friday.
Short seller says Beyond Meat hype is ‘beyond stupid,’ places bet against the shares Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: thomas franck
Keywords: news, cnbc, companies, retail, market, meat, bet, stock, public, took, products, seller, shares, hype, short, research, stupid, places


Short seller says Beyond Meat hype is 'beyond stupid,' places bet against the shares

Packages of Beyond Meat Inc. beef crumbles are displayed for a photograph in Tiskilwa, Illinois, U.S., on Tuesday, April 23, 2019.

A notable short seller is roasting newly public Beyond Meat.

Andrew Left of Citron Research took to Twitter Friday afternoon, saying the hype around the plant-based meat substitute company has sent its stock too high.

Beyond Meat “has become Beyond Stupid,” Citron Research said in a tweet. “Most heavily traded retail stock on Robinhood, market cap now bigger than industry, and superior competitor coming to market soon.”

Left, known for betting against Tesla and Valeant Pharmaceuticals, confirmed in an email to CNBC that he took a short position in Beyond Meat Friday. Beyond shares were down 6% in afternoon trading.

He added that its stock performance “seems to be all retail-driven without any fundamental basis.”

Notwithstanding Left’s prediction for a 25% plunge in Beyond’s stock price, the El Segundo, California company remains a bright spot in a string of shaky starts for 2019 IPOs.

Beyond’s products, including fake ground beef to burgers, are designed to replicate the consistency and taste of meat. Instead of animal protein, the meat alternatives use gluten- and soy-free products from peas and faba beans. And with more Americans experimenting with flexitarian diets, demand for Beyond Meat shares surged during its initial public offering earlier this month.

In one of the strongest kickoffs this year, shares rocketed 163% on May 2, the first day of trading for the equity. Beyond Meat, which priced its initial public offering at $25 per share, has seen its stock rally to highs north of $90 by Thursday’s close.

But Beyond’s rapid ascent — and popularity among retail traders — has Citron’s Left convinced its price tag has grown frothy, especially with competitors like Impossible Foods eyeing the public market. Despite a market capitalization north of $5 billion, Beyond only generated $87.9 million in 2018.


Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: thomas franck
Keywords: news, cnbc, companies, retail, market, meat, bet, stock, public, took, products, seller, shares, hype, short, research, stupid, places


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Roger McNamee: Facebook must stop making ‘superficial’ privacy fixes and change its business model

Facebook executives are making progress when it comes to speaking with the public, but need to focus on changing its business model, early Facebook and Google investor Roger McNamee told CNBC on Friday. “I really applaud Sheryl (Sandberg) and especially Mark Zuckerberg for engaging in the public conversation, ” the author of “Zucked” said on “Squawk Alley. ” Get focused on changing the business model in ways that are going to make the progress we will be able to see.” Facebook and other technolo


Facebook executives are making progress when it comes to speaking with the public, but need to focus on changing its business model, early Facebook and Google investor Roger McNamee told CNBC on Friday. “I really applaud Sheryl (Sandberg) and especially Mark Zuckerberg for engaging in the public conversation, ” the author of “Zucked” said on “Squawk Alley. ” Get focused on changing the business model in ways that are going to make the progress we will be able to see.” Facebook and other technolo
Roger McNamee: Facebook must stop making ‘superficial’ privacy fixes and change its business model Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, model, superficial, changing, public, technology, sandberg, facebook, making, mcnamee, roger, change, business, stop, ways, fixes, privacy


Roger McNamee: Facebook must stop making 'superficial' privacy fixes and change its business model

Facebook executives are making progress when it comes to speaking with the public, but need to focus on changing its business model, early Facebook and Google investor Roger McNamee told CNBC on Friday.

“I really applaud Sheryl (Sandberg) and especially Mark Zuckerberg for engaging in the public conversation, ” the author of “Zucked” said on “Squawk Alley. ” “But stop doing these superficial things … that don’t actually address the underlying problems. Get focused on changing the business model in ways that are going to make the progress we will be able to see.”

There’s a reason there’s dangers to privacy and democracy when it comes to technology, he said.

“There is this massive gathering of private data and use of it in ways that consumers are just completely unaware of. That’s the model that we have to fix,” McNamee said. Facebook and other technology giants, such as Alphabet’s Google, Microsoft or Amazon, should be looking at changing their business models, he said.

Sandberg, Facebook’s chief operating officer, sat down for an interview with CNBC’s Julia Boorstin on Friday morning, where she called for regulation of American technology companies and addressed privacy concerns, but advocated against breaking up Facebook.

“We know at Facebook we have a real possibility to do better and earn back people’s trust,” Sandberg said, referring to the several privacy mishaps that have occurred since the Cambridge Analytica scandal. Since early last year, Facebook has announced actions to improve the platform, among them, reworking its desktop and mobile apps, overhauling its ad targeting, and unveiling several measures aimed at making it easier for users to see what data is being held by companies.

And while appearing for interviews and “framing the conversation,” is helpful, McNamee said, technology giants should “pay the costs.”

“You have to get rid of the hate speech and disinformation before it amplifies,” he said.

Facebook, Alphabet, Microsoft and Amazon did not immediately respond to a request for comment.


Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, model, superficial, changing, public, technology, sandberg, facebook, making, mcnamee, roger, change, business, stop, ways, fixes, privacy


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Rent the Runway CEO: ‘I haven’t been given the privilege or permission to lose a billion dollars every quarter’

“I haven’t been given the permission or privilege to lose a billion every quarter,” she added. Uber , which went public last week, posted an adjusted loss of $1.85 billion for 2018. Rent the Runway co-founder and CEO Jennifer Hyman has her sights set on expanding her business — without sacrificing profitability. That won’t be a problem for Rent the Runway, if Hyman has her way. She said that funding gives the company flexibility to “time the IPO for when Rent the Runway will have the best succes


“I haven’t been given the permission or privilege to lose a billion every quarter,” she added. Uber , which went public last week, posted an adjusted loss of $1.85 billion for 2018. Rent the Runway co-founder and CEO Jennifer Hyman has her sights set on expanding her business — without sacrificing profitability. That won’t be a problem for Rent the Runway, if Hyman has her way. She said that funding gives the company flexibility to “time the IPO for when Rent the Runway will have the best succes
Rent the Runway CEO: ‘I haven’t been given the privilege or permission to lose a billion dollars every quarter’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-16  Authors: michelle fox
Keywords: news, cnbc, companies, privilege, dollars, quarter, disruptor, rent, given, company, business, billion, hyman, havent, 2019, lose, public, permission, runway, uber, ceo


Rent the Runway CEO: 'I haven't been given the privilege or permission to lose a billion dollars every quarter'

“I haven’t been given the permission or privilege to lose a billion every quarter,” she added. “I’ve had to bring my company towards profitability, so I think we are going to be well situated.”

“Profitability is something [I’ve] always been focused on as a female founder and entrepreneur,” Hyman said in a recent interview with CNBC’s Julia Boorstin .

It’s not an unusual goal — but one that some big tech companies have had a hard time managing. Uber , which went public last week, posted an adjusted loss of $1.85 billion for 2018. Lyft , another newcomer to the public market, had a first-quarter loss of $1.14 billion this year.

Rent the Runway co-founder and CEO Jennifer Hyman has her sights set on expanding her business — without sacrificing profitability.

Hyman’s comments come at a time when several Silicon Valley unicorns are entering or gearing up to enter the public markets. Uber went into its initial public offering last week with shares at $42 each, giving it a market cap of $69.7 billion. It dropped more than 7% on the first day of trading but has since recovered.

Critics have called that valuation too high, especially considering that Uber is losing money. There have also been those who say the ride-sharing company waited too long to go public.

That won’t be a problem for Rent the Runway, if Hyman has her way.

The New York-based company, No. 5 on the 2019 CNBC Disruptor 50 list, recently hit unicorn status, reaching a valuation of $1 billion after its most recent fund raise in March.

She said that funding gives the company flexibility to “time the IPO for when Rent the Runway will have the best success.”

More from 2019 Disruptor 50:

You can build a billion-dollar unicorn and still go on maternity leave

Phononic’s new take on refrigeration and new deal with Unilever

Meet the 2019 CNBC Disruptor 50 companies

In the meantime, she’s focusing on expanding the business, which she founded with her Harvard Business School classmate Jenny Fleiss in 2009.

At the time, the focus was simple: Customers could rent a dress for a few days and then return it in a prepaid envelope.

It has since expanded its clothing options and is now even branching out into home furnishings. In March, it partnered with West Elm to make its home accessories available to rent.

“We need to teach our customers that we aren’t just about fancy dresses anymore and this isn’t just a service for you as a woman,” Hyman said.

“Our goal is to be the Amazon Prime of rentals and reach every single person in the U.S. and the world.”


Company: cnbc, Activity: cnbc, Date: 2019-05-16  Authors: michelle fox
Keywords: news, cnbc, companies, privilege, dollars, quarter, disruptor, rent, given, company, business, billion, hyman, havent, 2019, lose, public, permission, runway, uber, ceo


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WeWork urges investors to see losses as ‘investments’ as it reports first-quarter loss of $264 million

In an interview with CNBC to discuss the company’s first-quarter financials, CFO Artie Minson urged investors to view losses as “investments.” WeWork, which recently rebranded as the We Company, said in its first-quarter business update that it lost $264 million in the period, narrowing its deficit from the same period a year ago, when it lost $274 million. Public market investors have punished Uber and Lyft for their billions in losses and uncertain path to profitability. Last year, WeWork lost


In an interview with CNBC to discuss the company’s first-quarter financials, CFO Artie Minson urged investors to view losses as “investments.” WeWork, which recently rebranded as the We Company, said in its first-quarter business update that it lost $264 million in the period, narrowing its deficit from the same period a year ago, when it lost $274 million. Public market investors have punished Uber and Lyft for their billions in losses and uncertain path to profitability. Last year, WeWork lost
WeWork urges investors to see losses as ‘investments’ as it reports first-quarter loss of $264 million Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-15  Authors: deirdre bosa
Keywords: news, cnbc, companies, public, investors, million, 264, uber, lost, investments, money, loss, company, cash, losses, billion, urges, firstquarter, reports, wework


WeWork urges investors to see losses as 'investments' as it reports first-quarter loss of $264 million

Adam Neumann, co-founder and chief executive officer of WeWork. Michael Nagle | Bloomberg | Getty Images

As newly public companies representing the sharing economy, Uber and Lyft stumbled out of the gate. WeWork is trying to prepare a different narrative for Wall Street. In an interview with CNBC to discuss the company’s first-quarter financials, CFO Artie Minson urged investors to view losses as “investments.”

“We really want to emphasize the difference between losing money and investing money,” Minson said Wednesday. “You can lose money or you can invest money. At the end of this quarter, we have these cash flow-generating assets.” WeWork, which recently rebranded as the We Company, said in its first-quarter business update that it lost $264 million in the period, narrowing its deficit from the same period a year ago, when it lost $274 million. Meanwhile, revenue more than doubled to $728.3 million (including $39 million from a program called Creator Awards), as the company expanded into new international markets and bolstered membership for its coworking spaces. Wall Street might need some convincing ahead of its IPO, which WeWork filed for confidentially in December. Public market investors have punished Uber and Lyft for their billions in losses and uncertain path to profitability. Uber sold shares at the low end of its expected range last week and the stock is still trading well below its debut price.

Source: CNBC

When asked if he was trying to differentiate WeWork’s losses from the capital the ride-hailing companies spend on subsidies and discounts, Minson said, “that’s a fair differentiator.” Renting out work space is “a proven business model,” he said. Memberships climbed to 466,000 from 220,000 a year earlier. Still, WeWork’s model continues to rely on heavy funding from private investors, namely SoftBank, which has poured more than $10 billion into the company, including $2 billion this year at a $47 billion valuation. WeWork has to plunge cash into real estate in some of the most expensive markets and it makes money back over time as companies and individuals pay their rent, or membership. But the public markets like to see profits when they’re asked to pay such a high price. When Uber went public, it became only the fourth U.S. company with a market cap of at least $50 billion that lost money in the prior year. The other three were CVS, General Electric and Qualcomm (the chipmaker only had a loss because it took a one-time charge tied to a change in the tax code). Last year, WeWork lost $1.9 billion, surpassing Uber’s losses, on revenue of $1.8 billion. Its cash and cash commitments stood at $5.9 billion as of March 31, down from $6.6 billion at the end of December. WATCH: Uber’s flop raises questions about other ‘unicorns’ planning to go public


Company: cnbc, Activity: cnbc, Date: 2019-05-15  Authors: deirdre bosa
Keywords: news, cnbc, companies, public, investors, million, 264, uber, lost, investments, money, loss, company, cash, losses, billion, urges, firstquarter, reports, wework


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Ford, GM shares jump as Trump plans to delay auto tariffs

WeWork urges investors to see losses as ‘investments’ as it…WeWork has to convince public market investors that its losses are different than those of Uber or Lyft as the company prepares for its IPO. Technologyread more


WeWork urges investors to see losses as ‘investments’ as it…WeWork has to convince public market investors that its losses are different than those of Uber or Lyft as the company prepares for its IPO. Technologyread more
Ford, GM shares jump as Trump plans to delay auto tariffs Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-15  Authors: michael sheetz
Keywords: news, cnbc, companies, delay, public, investors, wework, market, shares, plans, jump, ford, gm, losses, trump, lyft, prepares, uber, urges, auto, tariffs, itwework


Ford, GM shares jump as Trump plans to delay auto tariffs

WeWork urges investors to see losses as ‘investments’ as it…

WeWork has to convince public market investors that its losses are different than those of Uber or Lyft as the company prepares for its IPO.

Technology

read more


Company: cnbc, Activity: cnbc, Date: 2019-05-15  Authors: michael sheetz
Keywords: news, cnbc, companies, delay, public, investors, wework, market, shares, plans, jump, ford, gm, losses, trump, lyft, prepares, uber, urges, auto, tariffs, itwework


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The 5 best US states to live in, according to US News & World Report

Where you live doesn’t just affect what sports team you root for or whether you say “soda” vs. Geography can have a major impact on your career, earnings and quality of life. Each year, U.S. News & World Report surveys over 50,000 Americans in order to rank all U.S. states across 71 metrics in eight categories: crime and corrections, economy, education, environment, fiscal stability, healthcare, infrastructure and opportunity. The resulting Best States of 2019 list reflects the states that offer


Where you live doesn’t just affect what sports team you root for or whether you say “soda” vs. Geography can have a major impact on your career, earnings and quality of life. Each year, U.S. News & World Report surveys over 50,000 Americans in order to rank all U.S. states across 71 metrics in eight categories: crime and corrections, economy, education, environment, fiscal stability, healthcare, infrastructure and opportunity. The resulting Best States of 2019 list reflects the states that offer
The 5 best US states to live in, according to US News & World Report Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: abigail hess
Keywords: news, cnbc, companies, ranking, highquality, report, stability, live, states, according, healthcare, infrastructure, world, public, education, best


The 5 best US states to live in, according to US News & World Report

Where you live doesn’t just affect what sports team you root for or whether you say “soda” vs. “pop.” Geography can have a major impact on your career, earnings and quality of life.

Each year, U.S. News & World Report surveys over 50,000 Americans in order to rank all U.S. states across 71 metrics in eight categories: crime and corrections, economy, education, environment, fiscal stability, healthcare, infrastructure and opportunity.

U.S. News ranks each state from one to 50 — with one being the best and 50 being the worst — across each of these eight categories and then uses a weighed average to create a final ranking of the best places to live in the country.

The resulting Best States of 2019 list reflects the states that offer residents public safety and just corrections programs, strong employment and growth, high-quality public education, clean air and water, long and short-term financial stability, access to high-quality healthcare as well as robust energy, internet and transportation infrastructure. U.S. News also calculated opportunity based on variables like cost of living and economic equality.

Here is are the top five states on U.S. News’ Best States of 2019 ranking:


Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: abigail hess
Keywords: news, cnbc, companies, ranking, highquality, report, stability, live, states, according, healthcare, infrastructure, world, public, education, best


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Slack says it’s going to replace email and is as necessary as electricity in its pitch to investors

Stewart Butterfield, co-founder and chief executive officer of Slack Technologies Inc., speaks during an event in San Francisco, California. Business messaging service Slack briefed investors on Monday, as the company expects to go public with a direct listing on the New York Stock Exchange on June 20. Slack provided updated information in an amendment to its initial public offering filing ahead of its pitch to investors. Stewart Butterfield, co-founder and CEO of Slack, made the case that repla


Stewart Butterfield, co-founder and chief executive officer of Slack Technologies Inc., speaks during an event in San Francisco, California. Business messaging service Slack briefed investors on Monday, as the company expects to go public with a direct listing on the New York Stock Exchange on June 20. Slack provided updated information in an amendment to its initial public offering filing ahead of its pitch to investors. Stewart Butterfield, co-founder and CEO of Slack, made the case that repla
Slack says it’s going to replace email and is as necessary as electricity in its pitch to investors Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-13  Authors: michael sheetz
Keywords: news, cnbc, companies, electricity, quarter, pitch, slacks, company, replace, slack, million, service, butterfield, necessary, investors, email, world, public, software, going


Slack says it's going to replace email and is as necessary as electricity in its pitch to investors

Stewart Butterfield, co-founder and chief executive officer of Slack Technologies Inc., speaks during an event in San Francisco, California.

Business messaging service Slack briefed investors on Monday, as the company expects to go public with a direct listing on the New York Stock Exchange on June 20.

Slack provided updated information in an amendment to its initial public offering filing ahead of its pitch to investors. For the quarter ending April 30, Slack brought in revenue estimated between $133.8 to $134.8 million, up from $80.9 million in the same period a year ago. Slack’s net loss expanded to about $39 million in the quarter, from $26.3 million.

The service, which primarily caters to businesses, said it has more than 10 million users as of January. In its briefing to investors, Slack said it will release first quarter earnings and host a conference call on June 10, as well as give a second quarter forecast.

Stewart Butterfield, co-founder and CEO of Slack, made the case that replacing email with Slack changes the way employees of a company communicate.

“This shift is inevitable. We believe every organization will switch to Slack or something like it,” Butterfield said in a presentation.

He also pitched Slack as a software-focused company that believes the world is “only at the beginning” of its reliance on software. In that essence, Butterfield likened Slack as eventually becoming a utility, similar to the internet or electricity.

“The world is going to continue to use more and more software and we deliberately try to put ourselves in a position where Slack the company gets more valuable as the world uses more software because Slack the product becomes more valuable for our customers as that customer uses more software,” Butterfield said.

Slack is the latest in a string of large technology companies coming to the public markets. But rather than a traditional IPO, the service will list its shares directly on the NYSE. It’s the second major tech company over the last year to opt for a direct listing, following Spotify. Slack’s ticker symbol will be SK.

Slack, similar to the recent IPOs of Lyft and Pinterest, will offer two classes of shares, to consolidate voting power among its top shareholders. Slack’s Class A common stock will receive one vote per share, while Class B will be entitled to 10 votes per share.

Disclosure: Comcast Ventures, the venture arm of Comcast, is an investor in Slack. Comcast owns CNBC parent company NBCUniversal.


Company: cnbc, Activity: cnbc, Date: 2019-05-13  Authors: michael sheetz
Keywords: news, cnbc, companies, electricity, quarter, pitch, slacks, company, replace, slack, million, service, butterfield, necessary, investors, email, world, public, software, going


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This Silicon Valley tech exec flew 7,000 miles to take his internet company public in Australia

But unlike its neighbors, which trade on the Nasdaq or New York Stock Exchange, Life360 rang an opening bell on the other side of the world — in Australia. It’s the latest tech company to opt for an IPO down under, in lieu of raising another private round or testing the waters on Wall Street. The stock rose a little over 5%, giving the company a market value of $764 million Australian ($535 million.). Uber, the largest tech company to go public this year, generated over $11 billion in sales last


But unlike its neighbors, which trade on the Nasdaq or New York Stock Exchange, Life360 rang an opening bell on the other side of the world — in Australia. It’s the latest tech company to opt for an IPO down under, in lieu of raising another private round or testing the waters on Wall Street. The stock rose a little over 5%, giving the company a market value of $764 million Australian ($535 million.). Uber, the largest tech company to go public this year, generated over $11 billion in sales last
This Silicon Valley tech exec flew 7,000 miles to take his internet company public in Australia Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-12  Authors: salvador rodriguez
Keywords: news, cnbc, companies, members, australian, australia, company, miles, silicon, exec, life360, tech, million, public, internet, flew, uber, rang, stock, valley


This Silicon Valley tech exec flew 7,000 miles to take his internet company public in Australia

Social media company Life360 went public on Friday, the same day that fellow San Franciscan Uber debuted and amid a wave of Bay Area IPOs from names like Lyft, Pinterest and Zoom. But unlike its neighbors, which trade on the Nasdaq or New York Stock Exchange, Life360 rang an opening bell on the other side of the world — in Australia.

Life360, an app that lets family members stay connected, joined the Australian Securities Exchange, whose largest members include Commonwealth Bank of Australia and BHP Group, the world’s biggest miner. It’s the latest tech company to opt for an IPO down under, in lieu of raising another private round or testing the waters on Wall Street. Credible, a consumer finance marketplace, took the same route in 2017.

“People think of Australia as a small little country, but in terms of investable capital, it’s massively disproportionate to their population,” Life360 CEO Chris Hulls said in a recent interview with CNBC.

Life360 raised about $145 million Australian dollars (close to $102 million) on Friday. The stock rose a little over 5%, giving the company a market value of $764 million Australian ($535 million.).

With revenue of $32.1 million last year and a forecast to reach $58.6 million in 2019, Life360 isn’t big enough to attract public market capital in the U.S., where companies these days are typically well past $100 million by the time they debut. Uber, the largest tech company to go public this year, generated over $11 billion in sales last year. Beyond Meat, which is less of a tech company than a food company but with Silicon Valley investors, is the smallest at $87.9 million.

“We could go public here, but we don’t want to be in this swirl of noise,” said Hulls, who rang the bell of the ASX in Sydney on Friday. Instead, Life360 is the biggest tech IPO on the ASX in three years, he said.


Company: cnbc, Activity: cnbc, Date: 2019-05-12  Authors: salvador rodriguez
Keywords: news, cnbc, companies, members, australian, australia, company, miles, silicon, exec, life360, tech, million, public, internet, flew, uber, rang, stock, valley


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Uber stumbles in trading debut

Uber began trading on the New York Stock Exchange Friday at $42 per share, below its IPO price of $45. Toward the beginning of its trading, Uber’s market cap was around $74 billion. Uber is now the second ride-hailing company to hit the U.S. public market, following Lyft’s debut in March. As Uber began its first day of trading, Lyft’s stock was down more than 2%. Lyft’s poor performance on the public market has somewhat dampened expectations over Uber’s IPO, as Lyft’s stock has plummeted more th


Uber began trading on the New York Stock Exchange Friday at $42 per share, below its IPO price of $45. Toward the beginning of its trading, Uber’s market cap was around $74 billion. Uber is now the second ride-hailing company to hit the U.S. public market, following Lyft’s debut in March. As Uber began its first day of trading, Lyft’s stock was down more than 2%. Lyft’s poor performance on the public market has somewhat dampened expectations over Uber’s IPO, as Lyft’s stock has plummeted more th
Uber stumbles in trading debut Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-10  Authors: lauren feiner, cnbc, erin black
Keywords: news, cnbc, companies, uber, stock, ipo, ubers, trading, public, market, company, stumbles, lyfts, debut, khosrowshahi


Uber stumbles in trading debut

Uber began trading on the New York Stock Exchange Friday at $42 per share, below its IPO price of $45. The stock was down more than 1% toward the start of trading.

Uber priced its shares Thursday night toward the low end of its target range of $44 to $50 per share. That gave Uber a valuation of $75.46 billion at its IPO on a non-diluted basis, still well below the $120 billion it was reportedly seeking when news first broke it was preparing to go public. Toward the beginning of its trading, Uber’s market cap was around $74 billion.

The stock began trading in the face of difficult market conditions Friday. The Dow Jones Industrial Average fell about 300 points after President Donald Trump said on Twitter “there is absolutely no need to rush” trade talks with China.

Uber’s Chief Financial Officer Nelson Chai said “this was a tough day” on the market in an interview on CNBC after the stock began trading. Asked about whether executives considered delaying the IPO as a result of the conditions, Chai said, “I don’t think that we’re smart enough to try to judge the market … We weren’t optimizing to have the best opening price or the opening day. We’re really looking for how the stock continues to trade over time and that’s what we’re building for.”

Uber is now the second ride-hailing company to hit the U.S. public market, following Lyft’s debut in March. Both companies have been heavily scrutinized for continuing to post big losses, but many investors are also intrigued by the entrance of the new industry onto the public exchange. As Uber began its first day of trading, Lyft’s stock was down more than 2%.

Lyft’s poor performance on the public market has somewhat dampened expectations over Uber’s IPO, as Lyft’s stock has plummeted more than 20% from its IPO price. Uber CEO Dara Khosrowshahi said in an interview with CNBC’s Andrew Ross Sorkin on “Squawk Box” Friday that Lyft’s performance “led us to be a bit more conservative.”

But analysts saw a promising path to profitability in Lyft’s first quarterly earnings report after the company showed strong growth in active ridership and revenue per active rider. Executives said on the earnings call Tuesday the ride-hailing market overall is beginning to become more rational, limiting the need for driver incentives.

Like Lyft, Khosrowshahi said 2019 should be the company’s peak year for losses. Uber has been comparing itself to Amazon in its pitches to investors, which also infamously was not profitable at its IPO. While some analysts are dubious of the comparison, they also recognize investors’ fear of missing out on the next big thing. In his CNBC interview, Khosrowshahi said he stands behind the comparison despite the differences between the two companies at their IPO.

“It’s a fair comparison at the wrong time,” Khosrowshahi said. “So a lot of private companies now are holding off much longer before they go public. We are much bigger, much more mature as a company as we go public, and if you do look at the growth rates, our audience is growing 33% on a year on year basis, transactions are growing 36%. To be able to grow transactions 36% on a $50 billion base is pretty incredible, and we hope to keep it going.”

Khosrowshahi will be personally incentivized to keep up the value of the stock. If Khosrowshahi can keep Uber’s valuation above $120 billion for 90 consecutive days once it goes public, Khosrowshahi will win net stock bonuses topping $100 million.

Even with shares priced toward the low end of its target range, Khosrowshahi is unconcerned with reaching those goals.

“I wasn’t expecting it any time short term,” he told CNBC. “I’m here to stay. I’m here to build a big company. That compensation term is not about a single day, it’s about what value you create over 10 years, and over 10 years, absolutely I expect to get there.”

One person who was missing from the dais at Uber’s debut was its co-founder and former CEO Travis Kalanick. Kalanick, who was ousted from the company after accusations that he helped foster a hostile and inappropriate environment at the company, will be nearby with his father at Uber’s start of trading on the floor of the NYSE.

Correction: A previous version of this article misstated the value of Uber CEO Dara Khosrowshahi’s net stock bonuses if he keeps Uber’s valuation above $120 billion for 90 consecutive days.

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Company: cnbc, Activity: cnbc, Date: 2019-05-10  Authors: lauren feiner, cnbc, erin black
Keywords: news, cnbc, companies, uber, stock, ipo, ubers, trading, public, market, company, stumbles, lyfts, debut, khosrowshahi


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