1 Millennial-Focused Stock to Avoid No Matter What
There's little doubt that today's young adults eventually become tomorrow's breadwinners and big spenders. To this end, it would be shortsighted of any company to not prepare for inevitable changes on the horizon.
Sometimes, though, investors can be so distracted by their hunt for future-minded, revolutionary companies that they forget to ask if there's any actual money to be made with a particular business model.
Uber Technologies (NYSE: UBER) -- better known as just Uber -- is one of these questionable companies. The market cheered the ride-hailing service's IPO in 2019, touting a decade's worth of steady revenue growth leading up its public offering. But, as we look back at Uber's earnings results with or without the impact of the COVID-19 pandemic, questions surface. Chief among them is whether or not more scale will do the company any good. Operating expenses, administrative spending, and marketing costs seem to scale in step with revenue, but to date, they have always exceeded revenue. Maybe this millennial-focused business model just doesn't work as-is.
Source Fool.com
