Uber Faces Unprecedented Lawsuits
by Jimmy Mengel
Outsider Club
Last week, I took you through my hair-pulling, shirt-rending experience of dealing with car sharing service Uber.
This week I want to turn that anger into a cautionary tale about investing in “disruptive startups.” While many investors are always looking for the next big thing when it comes to IPOs, there are a few things you should know before doing so…
Many investors rush in on IPO day, just to watch the stock tumble for the first few months. This happened with Twitter, AliBaba, and Facebook. While those companies have climbed back up and over their IPO prices, you’d have been much better off with the lower entry price after holding tight for a couple of months (you can read more about that phenomenon in my article, How Not to Buy an IPO).