Month: May 2019

Uber slump after IPO points to concern about business model, profitability

May 18, 2019

In 2018, the company’s revenue was up by 43 percent from the year before – but that growth in revenue is slowing down.

“That’s a huge problem for a company valued at $80 billion, which is what they wanted to do at the time. So when you’re priced for perfection at that level you can’t show revenues – ok, with profits, we can wait. We’ll believe you, we’ll give you the benefit of the doubt about profits. But, revenue? That’s your thing, you’ve got to grow that,” said Rao.

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Everything is a function of what happens in the US essentially: Santosh Rao, Manhattan Venture Partners

May 16, 2019

The narrative in the US is that Mr Modi’s government will get elected again, said Santosh Rao, Head of Research, Partner, Manhattan Venture Partners, in an interview with ETNOW.

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Why an Etsy, Pinterest Partnership Makes Sense

May 13, 2019

“These are highly motivated users, they tend to buy, they tend to act,” Manhattan Venture Partners head of research Santosh Rao explained in an interview with Real Money. “The advertisers get the views that they want, and they get the return on their investment.” So too could an e-commerce player like Etsy looking to access that user base. “At some point, they’ll become e-commerce,” Rao said. “Users come there for actions. Users are thinking of buying, looking for ideas.”

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How does an IPO get its value?

May 13, 2019

In general, investors buying shares at the offering price want to pay the least, meaning the lowest price per share they can get. Then, when the stock bumps up once public trading begins, these investors have instantly made a profit. But Santosh Rao, head of research at Manhattan Venture Partners, says IPOs are also very popular with investors right now, and some will disregard an inflated share price. “It’s IPO fever right now,” Rao said. “Some investors just want to get in there. You get bragging rights, other than the fact that they’re good investments.”

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Why IPO pricing is “more of an art than a science”

May 13, 2019

In general, investors buying shares at the offering price want to pay the least, meaning the lowest price per share they can get. Then, when the stock bumps up once public trading begins, these investors have instantly made a profit. But Santosh Rao, head of research at Manhattan Venture Partners, says IPOs are also very popular with investors right now, and some will disregard an inflated share price. “It’s IPO fever right now,” Rao said. “Some investors just want to get in there. You get bragging rights, other than the fact that they’re good investments.”

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Lyft stock is down 30% since trading debut. Now its first big quarterly earnings loss is about to hit the market

May 8, 2019

In late March, Lyft’s co-founder John Zimmer told CNBC — on the Friday morning when the rideshare firm went public and he earned hundreds of millions of dollars — that the company was “ready to be held accountable” for the fact that it had no history of profits. The market did not wait long. After finishing up modestly on its first day of trading, it has been almost all downhill for the company, with shorts piling into the stock and a loss for Lyft investors near-30% below its first-day closing price.

One thing no one expects is a profit. That may not arrive until earliest 2022, according to early Lyft investor Santosh Rao, partner at Manhattan Ventures.

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Pinterest Rises as Susquehanna Initiates Coverage at Neutral

May 6, 2019

Shares of Pinterest (PINS) were getting a lift Monday after analysts at Susquehanna Financial initiated coverage of the newly public social media company at neutral, saying the company’s user base is particularly supportive of monetization.

This trend may also be helpful for Pinterest’s e-commerce plans. “At some point, they’ll become e-commerce,” Santosh Rao, head of research at Manhattan Venture Partners, which held Pinterest shares on the private market, told TheStreet recently. “Users come there for actions. Users are thinking of buying, looking for ideas.” Rao added, “They’ll click on something, go to the site and buy it.”

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