Takeaway: We are adding Uber to the short side of Investing Ideas today.

Below is a brief note written by CEO Keith McCullough:

Is your day filled with the emotions of chasing high and freaking out lower? Sounds like you might be trialing our product. No worries, I used to be that way too (sort of, and a long time ago).

Now that all the super duper UBER Old Wall bullish "initiations" are out (this week), the stock is signaling immediate-term TRADE #overbought. 

Here's an excerpt of Jay Van Sciver's initial research on the name (i.e. well ahead of the Old Wall's panic in the name):

  1. Valuation Is Not Conservative: The price range was largely outside of where high growth, profitable, asset light transportation companies have traded at peak, let alone the valuations at which those select companies currently or typically trade. For the valuation to look reasonable, one has to believe that revenue will grow at something like 15%-20% for the next, say, five years, and that the company will pick up dozens of percentage points of adjusted margin over that period.  For a business that doesn’t have a history of being especially forecastable, and is now showing decelerating growth, the range was rich, and partly just based on a premium to private market transactions.

Sell on green,

KM