Is Uber Stock My Next GoPro! 0,000 Loss Coming!?

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Whoa guys just a few days ago i released a video on financial education to around an analyst that believes at uber stock might double in 2020 but the most interesting thing was i was reading in the comment section and somebody basically made a comment that they believed goober stock is gonna be my next go pro stock and this comment got a lot of likes and this is not

The first time i’ve seen comments like this in regards to uber stock and it potentially being my next go pro stock and i’ve got quite a bit of money already invested uber okay over thirty thousand dollars in one of my accounts eleven hundred sheriff’s in that one then another county owned nearly twenty six thousand dollars worth of uber stock 927 shares in that

Particular account so needless to say i already own a lot of uber shares and i’m interested in buying more uber shares if it goes down to 26 $25 but i have seen quite a few comments out there that some folks believe that uber stock is gonna be my next gopro stock and i gotta say this is not the first time i’ve seen this i know there’s a lot of fans of the channel

And fans of me i don’t want to ever see me take a loss on a stock and i definitely appreciate that but i’ve definitely seen this a la with uber and i gotta say i did see it a lot with tesla as well you know a lot of people said you know tesla was going to be my next gopro obviously that situations turned out very differently a lot of people said elf stock was gonna

Be the next gopro because that was a downtrending stock and it was a low price stock i kind of like how gopro was back in the day obviously we ended up making 100 percent plus on our money on elfs talking like a six to nine month span tesla’s going great i think we’re up thirty forty something thousand dollars on our tesla shares so that’s going phenomenal but i do

Understand a lot of people have skeletons in the closet because of what happened to me in the past with gopro we took nearly a forty thousand dollar loss on gopros by far and away my biggest loss i’ve ever had to take on a stock ever and that was obviously publicly documented on the channel we talked about a million times and so i thought it would be important to

Talk about if uber is the next gopro if this is the potential real bad situations we’re gonna look at some fundamentals of these businesses and see if we can find some similarities between a stock like gopro in a stock like uber and pretty no specifically going back to a gopro back when i had the bullish thesis around that particular stock so i hope you guys enjoy

This let’s start getting into smash a thumbs up button and let’s go guys okay so first thing you want to always pay attention to is obviously a ceo of a company a ceo yoga the company can drive the company do great things or bad things and stock performance over time it’s gonna be pretty reflective of how a ceo does in their job and so if we look at overstock their

Company is led by a guy named dark house’ shari i can never pronounce this name right okay but dar is a really really good ceo he used to lead expedia he used to be the ceo of expedia and during his tenure as ceo of expedia which you guys know as a travel giant right the gross value of its hotel and other travel bookings more than quadrupled in its pre-tax earnings

More than doubled and during his tenure as ceo he bought companies like travelocity orbitz and home away okay and so basically he did a great job so this is a this is a ceo that’s leading ober that has done a phenomenal job at leading a big public company in the past okay so proven track-record very important from a perspective of a guy that knows how to do this

Knows how to build out of business expand a business and run a stock up and you know have a stock perform well over time so very very important whereas gopro was led by somebody named nick woodman and nick woodman was a cool guy and whatnot but nick woodman had never let a public company he had never made the tough decisions you have to make as a public company

Ceo he basically you know started this business this was his first successful business and he was a really good entrepreneur but he really didn’t have any experience leading a public company leading a big organization that has mass amounts of employees and obviously i mean just look at gopro stock chart it is sad okay they you know the stock chart over the long

Term will show you how a ceo does in that job and obviously if you look at just a stock chart of gopro over the years it’s pretty obvious you know basically how the ceo was so i think that’s the first thing we got to pay attention to two very different situations as far as the executives of these companies and specifically the ceo of uber it’s not even you know

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To be compared to nick woodman no disrespect to nick woodman but there just shouldn’t really be compared there okay so now let’s talk about some fundamentals of these actual businesses and go from there okay so it’s first off we got to talk about the main business for gopro and the main business for uber in our there are some similarities there or they’re just very

Very different okay so if you think about gopro obviously their main business is selling action cameras no an action camera business is a hundred percent a once based business when you’re talking about selling action cameras it’s not needs-based at all it’s you know the guy that wants to go snowboarding and put a camera on his head it’s a person that wants to go

Snorkeling on maui because they’re about to go on vacation and they want a camera that can basically go underwater they buy a gopro it’s a hundred percent a wants based business and i think this is very important to understand because once based businesses can you know very much fluctuate if it’s really in style and everybody wants that want item then obviously

Sales can go through the roof for a particular time but when the things aren’t as in style and it’s a once based business it’s not a needs-based business people just can forget about it and it kind of becomes irrelevant and if you look at gopro over time basically they peaked around 2014 and since that time gopro has just been declined decline decline and that’s

What we have seen from gopro over time whereas if you think about uber main business it’s obviously ride-sharing and in terms of ride-sharing it is absolutely a needs-based business people need a ride okay people need a ride to get to work to get to school to get from the airport to get to the airport people take rides for all do you know somebody drinks a little

You at the bar late at night and they can’t drive home they take an uber okay there’s a ton of needs-based things on why people need to take a ride service of some kind of a particularly day so if you think about just the united states right the two players that everybody knows about if you’re going to take a ride somewhere it’s uber and it’s lift if uber lyft

Suddenly just the apps didn’t work tomorrow they just don’t like night they just didn’t work like there would be millions upon millions of americans that would be like completely clueless on how they’re gonna get to school how they’re gonna get to work how they’re gonna get to the airport how they’re gonna get back from the airport they’re just like what do i have

To do do i have to try to like take a taxi now do i have to walk to where i need to go to them i got have to ride a bike they people just be in complete confusion if those two apps when and you if you think about it around the world if we’re talking about hundreds of millions of people rely on services like ride-sharing every single day this is needs-based stuff

This isn’t like somebody would have to be a really weird person to like want to just take uber rides all over the place it’s a needs-based business and so therefore that alone differentiates from a gopro in a massive massive way gopros completely want and ubers completly need i need to get over there i need to take a ride i need to take an uber okay and uber buys

Out their other needs based rivals so somebody like kareem which is a dominant player in ride hailing in the middle east they went ahead and bought them out earlier in 2019 for a little over three billion and then they have a big ownership stake in dd which is essentially the uber of china another needs-based market with a needs-based company and we’re talking

About dedes valuation continues to rise a sixty-two billion dollar valuation was the latest valuation there so in terms of uber its needs-based in terms of gopro it was once based you know if uber just stopped working tomorrow like mass amounts of people would be in complete confusion and not in a good situation if gopro decided to stop selling cameras tomorrow

Something like that you’d probably have a few people are like dang i really like those gopros but it wouldn’t really change anybody’s day if all the ride-sharing services went down tomorrow it’d be a big bad situation okay two very different businesses right off the bat okay let’s talk about secondary businesses let’s talk about what else they had going outside

Of their main business well in gopros case it was an accessories business this was really their secondary business it was selling things like extra batteries selling things like floaties for the camera so the camera wouldn’t go underwater are different housings and things like that and so this accessories business for gopro it was a very reliant on camera sales

Because when somebody would buy an actual gopro camera they were much more likely to buy accessories along with that camera it was actually their best time to like basically purchase accessories so basically if camera sales started to go down for gopro then these accessories which a lot of them were also kind of want based things those would go down as so it was

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Like a really really bad situation another wants item that if the main want item which was the camera went down accessory sales were going down it’s just a bad situation there okay now with uber eats this would be goober secondary business and i would describe oh burt eats as somewhat of a want business but somewhat of a need business okay so think about it in this

Context there’s definitely a lot of people that go on uber eats and just the other delivery services you say you know grubhub door – i post mates all those you know type of ones that probably could easily drive to go pick up the food but there might just be you know lazy they might just want to be chillin at the house i’d rather just have it delivered and pay that

Fee or something like that so in that sense it’s a once based business but there’s also a needs based business because some people don’t have the time it would be really inconvenient for them to drive ten minutes that restaurant then ten minutes back and walk in and things like that that the time is just much more valuable to them than what that you know small fee

They have to pay 200 or something like that also there’s some folks that you know might be disabled and whatnot that might it might be kind of unrealistic for them to go pick up food somewhere so if they can have food delivered to them it merely makes it more of a needs based business and a wants based business so you know i can definitely see why ooh brr eats could

Be considered a wants business i can definitely see why it’s considered a needs business and something in between kind of a hybrid but this is a highly highly successful business okay this is now a multi-billion dollar business for uber and there was a great interview done just a couple weeks ago okay with uber ceo and kerr swisher she asked the questions he’s

Always super negative especially around uber and she’s like what your guys is amazon web services because amazon web services now looked as like the magic pill okay for amazon that you know you kind of built amazon’s profits up and whatnot so like what do you got your amazon web services and the ceo he went through the math with her because she’s like the at math

Doesn’t add up with uber and whatnot just because they’re taking losses here on the short term and he goes do the math with her and it’s like you actually do have to do the math you kind of like owns or he’s like the ride-sharing business will be our amazon web services and ubereats will be amazon web services 2.0 okay we have two amazon web services coming for us

We don’t need some magic pill to suddenly work for a company or something like that and so uber eats is gonna it’s already a highly successful business it will get a lot better in the future you have a lot of vc money out there right now sloshing around so a lot of these you know grub hubs door – post mates a lot of these players have a lot of money to play with

Here in the short term and they’re using it on promotions and that hurts profitability for something like uber eats here in the short term but over time the market will stabilize that vc money will dry up and then theirs will become a very very profitable business for somebody like an uber eats okay so needless to say once again big big difference between something

Like a gopro in an uber okay know is talking about up incoming businesses so we talk about the main business both these companies had talked about the secondary business so let’s talk about the up-and-coming business well in gopro situation back when i was invest in stock there was a ton of talk around they were gonna build a drone okay and this was super exciting

This was super exciting this was one of the bullish theses i had for gopro was they were gonna come out with this drone and gopro knows how to market so well and they were gonna get a ton of attention for the drone and gopro had built pretty good products up to that date so there was a lot of belief that they could make this a success get a ton of attention and

This could become a you know a billion dollar a multi-billion dollar business for gopro overall which gopro was such a small business and in relation to like you know the big companies out there that if they could create a two billion or four billion dollar drone business this was a game-changer for a gopro stock over all and this was something that could you know

Make the stock 2x 3x 4x and a very quick amount of time so gopro they take forever they delay this drone several several times and then i they finally they finally come out with it and my bullish thesis starts to play out because this drone gets so much attention ok casey nice tat on his channel this isn’t the heyday of casey neistat he does a video very positive

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Around the gopro tirana gets nine million views and then the launch video in general for the karma drone got over twenty eight million views on youtube okay and never mind that there was so many other follow-up videos people that did around the drone this has so much mass attention that if you were at all interested in drones you knew about the karma drone and you

Knew why it might be a good product bad product or something like that and i got to say right off the bat they kind of didn’t produce the the most exciting drone out there especially when the mavic came out right after it so they kind of i don’t want to say they failed there but it got a ton of attention that was great and the product was interesting enough to

Consumers however they had delays in this product several times and then it finally comes out and the drone is falling out of the sky it’s literally falling out of the sky and all because a simple latch would come loose it was the most ridiculous thing i took them months to figure that out it was it was it was you know this is what happens when you buy into a

Company with a ceo there who doesn’t have a track record of being a successful ceo or a successful executive of a public company you take a risk like that and i learned that that risk is not a lot of fun to take ok and very shortly after a year or two later they actually each completely shut down their drone business it just wasn’t even worth it so it was just a

Disaster the up-and-coming business that was you know so hyped about for years that was one of my beliefs is a completely failed because literally the drones fell out of the skies and it’s just completely ruined the entire business model there on top of you know a lot of day you know management made so many mistakes we can make a six-hour video just about a whole

Mistakes they made ok uber freight is the up-and-coming business that no one really sees for uber and this is a business that’s really undercutting the industry of basically the middlemen that basically place a trucker in a delivery it needs to be made and they’re undercutting the pricing and making it actually a lot more efficient for the drivers and a lot of

Shippers so this is a product that’s coming after a massive industry which is you know hundreds of billions of dollars as far as the trucking industry and it’s having huge success and if you’re looking at the way this products going it’s just getting bigger and bigger we’re looking at you know this is a business that’s growing very very high double digits like 80%

Plus revenue growth and we’ve seen some quarters with as business is growing a hundred percent plus and if you’re just looking at it from the standpoint of truckers as well as shippers a lot of them are very happy with this product and i can definitely see this expanding and becoming a multi-billion dollar business for uber over time and probably a very profitable

Business but that’s gonna be you know further out you’re looking at more three to five years out but if you’re you comparing these two companies and my opinion is very misguided two very different ceos leading these companies two very different main businesses two very different secondary businesses as well as two very different up-and-coming businesses one looks

Like it’s gonna be a huge success for likely over time and already is proving that the other was drones were falling out of the sky so i don’t really think these stocks should be compared at all i understand every time i ever buy a stock that is going through some troubles in the short term which is pretty much every stock i ever buy about facebook when i was going

Through the drama you know it last year or whatever about cirrus logic in the past skyworks solutions all these stocks i make the killing on i always buy stocks that are down trending so i understand why a lot of folks out there worried and they’re like is that going to be the next gopro for him i understand that but i just don’t think i think it’s very misguided

And i don’t think anybody’s using like their brains to compare these two companies in my personal opinion but hey i want to hear your guy’s opinion down there in that comment section as always and by the way we got a crazy sale coming on the becoming master the stock market course on black friday and if you want to check out the pin comment down there that is going

To be actually for signing up to the email list so as soon as that deal drops we’ll send you an email so you can get in on that insane deal we’re gonna do a price point we’ve never ever done in the history becoming master of stock market which goes into everything i look for in stocks as well as has a dividend investing mastery section so if you guys really enjoy

That deal when we launch it next week all right thank you for watching have a great day

Transcribed from video
Is Uber Stock My Next GoPro! $40,000 Loss Coming!? By Financial Education

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