Many of the billion-dollar US technology startups (or so-called unicorns) that have tested the initial public offering market in 2019 have proven unprofitable.
Two of the biggest unicorns of this year, ride-hailing giant Uber and interactive fitness firm Peloton have recently released less-than-impressive earnings reports.
RT’s Boom Bust is joined by Adam Mesh of the Adam Mesh Trading Group to look at Silicon Valley’s troubled unicorns.
Uber loses $500 million every hour, he notes, adding that “people don’t have an appetite for a company that’s saying it won’t be profitable for two years.” According to Mesh, Uber is the biggest concern among startup firms.
Mesh points out to some experts who are saying “those companies spend more than they make and they are already fighting to compete with alternative options.”
As the market grows more competitive, “it could be challenging,” he says.
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