Uber the rideshare tech company, its stock tanked on its first official trading day on the NYSE, Friday, May 10, 2019 will be a day of turmoil on the Uber corporate calendar. It was a horrible trading day for the mammoth ride sharing tech company.
Uber declined close to 8% during the stock market trading day. The stock plummeting so much (in which it did), is the first time any stock has come out the gates on Wall St and lost so much market share. The valuation of Uber was at $76 billion dollars, when analysts had predicted that it would be valued around $90-$100 billion dollars, well that didn’t happen. Not only that, Uber has been bleeding money and the perception is that, Uber won’t actually make any real money until the year 2024, hopefully.
Uber being one of the biggest IPO companies probably since Alibaba, Facebook and a few others. So it to falter as it did was a shocker to some and to others, not so much. Technology companies tend not to fare well in the beginning of their IPO presence. Facebook had a rocky start coming out the gates and other big tech companies before it, have gone through similar revelations.
It’s the test of time that will dictate the longevity of Uber’s existence and if they can navigate their ship in theses rough and turbulent stock market waters. -SB
The hotel industry is going full force at town and city regulators around the US, to have individuals who are registered with AirBnB to attain licenses that are mandated in city and town laws. Many AirBnB participants seem to be able to skirt or skirmish from attaining licenses to be able to rent or sublet their apartments, condos, coops, room residences, because they are simply not registering for the applicable licenses.
Many homeowners who use AirBNB indicate they do not need licenses because most times they are only renting out a room or a residence less then the time needed legally to adhere to a license within city limits.
The license that is needed or at issue is what is called a vacation rental license which allows most rentors to rent or lease out their property for a few years. Many residents don’t apply for the license which has become a problem to the hotel industry in many towns and cities, because they believe fraudulent behavior is going on.
Many hotels have to obtain and sustain licenses and they believe companies such as AirBNB are hurting the industry and the hospitality sector as a whole with what is happening. City and town regulators have been watching these developments unfold but it has been difficult to actually go after AirBNB hosts who do not follow the law and obtain the vacation rental licenses, because of how complex the situation is in general.