The tech sector teardown is extra catharsis than disaster

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Following a sequence of “tremendous clarifying” conferences with shareholders, Uber’s chief govt, Dara Khosrowshahi, emailed workers on Sunday evening with an arresting message: “we have to present them the cash.”

Mangling his metaphors, Khosrowshahi defined that the market was experiencing a “seismic shift” and the “goalposts have modified.” The ride-hailing and meals supply firm’s precedence should now be to generate free money stream. “We’re serving multitrillion-dollar markets, however market dimension is irrelevant if it doesn’t translate into revenue,” he wrote.

For the boss of Uber to be trumpeting money stream and revenue would as soon as have appeared about as probably as Elon Musk shouting about the advantages of non-public humility and petrol-fueled vehicles. No firm has been extra emblematic of the lengthy, loopy, capital-doped bull market in know-how shares than Uber. Based in 2009, the corporate floated a decade later at a valuation of $76 billion with out recording a single quarter of income. Its belated conversion to monetary orthodoxy exhibits how a lot markets have been reworked because the flip within the rate of interest cycle and the crash of the tech-heavy Nasdaq market, which has dropped 26 % this yr.

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