Investors who have bought into any company operating in the technology space in the past 10 years has probably done very well. The NASDAQ exchange and many of the companies trading in Canada on the TSX in the technology sector have outperformed the broader market by a significant margin. Finding the next gem which is set to outperform is the hard part.
The tech sector has seen some hot initial public offerings (IPOs) in recent years; however, the impending IPO of Uber Technologies Inc. is one which is expected to blow many of the recent offerings out of the water, for a number of reasons.
Uber has grown its business incredibly fast, becoming a global superpower in the race to the top of the ride-sharing economy. The company's ability to deliver on a business model many thought could never be profitable due to various barriers to entry which have been put in place by governments and taxi cab consortia has invited many a tech investors to dig deeper into the merits of owning shares in one of the leading companies in this space.
Recently, Uber has also announced that it is in talks to buy Europe-based Deliveroofor an undisclosed amount (though most certainly in the billions-of-dollars range), in a bid to increase the company's vertical integration into meal delivery as an extension of the company's core business offering.
Uber most certainly will be one of the hottest IPOs of quite some time; that being said, I'm going to be on the sidelines waiting to see how this one plays out.
Invest wisely, my friends.
