Stocks

Goldman Sachs…The Real Uber Winner

Uber makes its IPO debut Friday in one of the most anticipated IPOs in 2019.  Uber is set to price their shares at $44 to $50, given the company an immediate $80 or $90 billion market cap.

In 2018, Uber’s revenue reached $11.3 billion for the year, up 43% from 2017, but the company remains unprofitable.  Thus, tomorrow there will be winners and losers (just like with the Lyft IPO).  The losers will be the retail investors, who will be eager to jump in and get a piece of the pie.  The winners will include, Ashton Kutcher, Jay-Z, Beyonce, Gwyneth Paltrow and Leonardo DiCaprio, Uber’s co-founder Travis Kalanick,

Uber’s largest shareholder, SoftBank, Jeff Bezos who invested $37 million in Uber’s series B fundraising in 2011 (which will turn into $400 million tomorrow), etc. However, the biggest winner in terms of ROI will be Goldman Sachs. Goldman’s return could surpass that of any other Uber investor.

In 2011, Goldman Sachs executive David Solomon — now CEO of the bank, created a fund designed to invest in startup and one of those bets was an unknown ride sharing company called Uber.  Back in 2011 the fund invested $5 million in Uber.  Tomorrow when Uber debuts as a public company that $5 million will turn into $600, a 12,000% return. 

There is a reason why Goldman Sachs is regarded as the #1 firm to work for on Wall Street and this is just another example of why. So where is the price of Goldman Sachs headed next, lets go to the charts?

Monthly Chart (Curve Timeframe) – monthly supply is at $235 and monthly demand is at $148.

Weekly Chart (Trend Timeframe) – the trend is down.

Daily Chart (Entry) – price has consolidated since mid January, no set-up at the moment, the charts suggest to play the extremes at the monthly zones.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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