Hedgeye Industrials analyst Jay Van Sciver summarized one of his newest short ideas, UBER, on the August 12th edition of The Macro Show.
Van Sciver argues that for the amount of cash UBER is burning, the ridesharing company should be growing at a much faster rate than it currently is.
“I think that when people look back at this particular market, what’s the anomaly they’re going to focus on? I think it’s going to be the ability of these companies to do capital raise, after capital raise, in order to generate results that look pretty disappointing,” Van Sciver explains in the clip above.
“I think what’s going to come out is that the market opportunity is much smaller than people expected.”
Watch the full clip above for more.