Business

Investing in Uber may be a “Hail Mary.”

It may be the most anticipated Initial Public Offering this year.

Ride-sharing company Uber begins trading on the New York Stock Exchange Friday, but should you add it to your portfolio?

WSB Money Matters host Wes Moss said, “Investors are really playing Hail Mary economics,” if they decide to buy Uber stock. “It might, might, might work out. Hail Mary’s happen but not very often,” Moss said.

The concern for WSB’s money expert is Uber’s lack of profitability. Moss said, “It’s hard to know what a fair price is for a company that’s bleeding money.” He said Uber may be the most unprofitable company to ever go public.

While it could turn a profit one day, Moss said “A lot of things have to go right for that to happen.” He said it could take a decade.

“If you’re an investor with an iron stomach, this might be for you, Moss said, but if you’re a more conservative investor that can’t handle lots and lots of years of maybes, then I’d probably stay away from it.”

Uber announced on Thursday it was pricing its IPO at $45 per share, which was at the lower end of its targeted price range.

Uber’s main rival, Lyft, went public six weeks ago with an IPO price of $72, but has lost about a quarter of its value since.

Uber has a market value of $82 billion, which is five times more than Lyft.

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