>> Wall Street banks one upping one another, hoping to snag a piece of a long anticipated Uber stock market debut. One of those banks, Morgan Stanley, going as far as proposing a $120 billion valuation on the ride hailing app, according to a report Tuesday in the Wall Street Journal.
That's more than the market value of General Motors, Ford, and Fiat Chrysler combined. In its latest round of funding just two months ago, Uber was valued at $76 billion, and that's without ever turning a full year profit. Reuters Breaking news columnist Rob Cyran says the new valuation estimate is overly rich, but he understands why Wall Street is ready to ride with Uber.
>> As long as investors only care about growth, Uber's gonna do just fine because they've got various business, for instance they got into the electric bikes rental, they've gotten into delivery of fast food. Talked about getting air taxis but as long as they can grow this fast, investors are all focused on all the possibilities, and they think okay, well who cares about the losses today?
At some point, Uber's gonna grow so much and it'll be able to just throw off profits.>> Add to that list Uber's self driving car ambitions. Armed with a $500 million investment from Toyota, Uber plans to have a driverless fleet on the road starting 2021. But self-driving cars have been a blemish for the company.
There was a legal battle with Google's Waymo and a woman killed by an Uber self-driving SUV. And that's not the only thing that Uber's had to overcome. Last year, boardroom drama forced out founder Travis Kalanick as CEO, but new leader Dara Khosrowshahi has turned sentiment around.>> Just cleaning up the messes a little bit will put a lot more optimism in the company, will somehow find a way to make profits from all this fast growth they're getting.
>> The IPO, likely one of the biggest ever, is expected early next year.