The kids are jumping ship and they’re not coming back.
They have accomplished an amazing feat: losing tons of money year after year during the Good Times in what were profitable industries.
Wayfair, Zillow, Uber, Lyft, WeWork, Carvana, Tesla, Airbnb, Casper Sleep, Zume, and many others – they all have accomplished an amazing feat: losing tons money year after year during the Good Times in mundane profitable industries.
This hoped-for fake “profitability” isn’t profitability, but “Adjusted EBITDA,” Uber’s own homemade creature. Lyft produced a similar horror show yesterday.
“Its track record of disrupting traditional financing” hit by fallout from client companies that suddenly collapsed under undisclosed debts. Tentacles spread to Credit Suisse.
But those paper gains were fun while they lasted.
“False optimism can easily lead you astray and prevent you from making contingency plans or taking bold action.”
The out-of-money moment is here. The party is over. But it sure was fund, so to speak, while it lasted.
The fatal flaw of meal-delivery unicorns.
Tender Offer Didn’t Happen. Bonds Plunge to Record Low. This comes after WeWork reported a $1.25 billion loss in Q3. Second thoughts about throwing so many good billions after bad?