Investors are anxiously waiting their chance to buy Uber stock in 2017, but the wait to own shares of the $70 billion company will most likely continue.
Uber CEO Travis Kalanick told Business Insider in 2016 he wants to delay an IPO for as long as possible. He said Uber could go public sometime between 2017 and 2026.
However, that was before a long list of controversies emerged...
Authorities reportedly conducted stings in cities where Uber wasn't allowed as early as 2014. In response to authorities cracking down on the ride-hailing app, Uber used a tool called "Greyball" to avoid picking up authorities in sting operations.
And this is just one reason why the Uber IPO could be delayed...
The Growing List of Problems Before the Uber IPO Date
In mid-March Uber President Jeff Jones announced he was quitting amidst the company's growing controversies. Jones, the former chief marketing officer for Target Corp. (NYSE: TGT), had only been installed as president of Uber since August 2016.
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Jones had also previously worked for Coca-Cola Co. (NYSE: KO) and Gap Inc. (NYSE: GPS), and he was brought into the fold at Uber to help improve its reputation. Lawsuits, sexual harassment claims, and the Greyball controversy were simply too tall of an order for even the most talented marketing professional.
Speaking of lawsuits, as of last summer, Uber has more than 70 federal lawsuits pending. Vehicle accidents, drivers who want benefits and pay increases, and sexual harassment claims are not precursors for a successful IPO.
If you've been anxiously awaiting the Uber IPO, you should redirect your energy and your investment dollars.
That's because Money Morning Director of Tech & Venture Capital Research Michael A. Robinson has a strategy to make money from IPOs right now...
Bypass Uber Stock and Consider This IPO Investment Instead
Robinson recommends the First Trust U.S. Equity Opportunities ETF Fund (NYSE Arca: FPX) as a way to play the IPO market that maximizes gains and minimizes losses.
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For example, the fund has 1.42% of its holdings in Snap Inc. (NYSE: SNAP), which just went public on March 2.
But the ETF also provides diversification by owning some of the best and most well-known companies on the market. FPX has 10% of its holdings in Kraft Heinz Co. (Nasdaq: KHC). Kraft Heinz isn't as exciting as Snapchat, but it's been a solid long-term investment.
The KHC stock price has climbed over 19% since July 2015.
This means investors have more protection than if they just owned Snapchat stock. Kraft Heinz can offset losses from SNAP, and investors can still profit when the Snapchat stock price climbs.
Shares of FPX opened this morning at $57.25 per share. Over the last 12 months, the FPX stock price has climbed 15.82%.
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