According to today’s Wall Street Journal, share prices of Uber and Lyft stock have not recovered to the level of their offering prices.
One reason may be that some more perspicacious valuations of the companies are in the minds of some investors.
The commentary here on Uber’s business model provides insight into how to value the company’s financial prospects.
The reality of Uber may prove the wisdom of the old sayings “If wishes were horses, beggars would ride” and “If to do were as easy as to know what were good to do, chapels had been churches and poor men’s cottages princes’ palaces.”
There is something in the human heart which is prone to speculation; not the prospect of reward only, but hubris of besting fortune or just “irrational exuberance.” Financial markets, as John Maynard Keynes told us in the 1930’s, in large part, feed the need of betting on outcomes for the wise and the foolish alike.