Uber considered going public for at least four years.
It was hardly the "pop" that investors may have hoped for after analysts suggested Uber took a conservative approach and priced its IPO on the lower end of its marketed range. In particular, Uber's poor reception raises questions about how WeWork might be valued in an IPO after posting $1.9 billion in losses past year on $1.8 billion in revenue. "Uber has lost more money faster than any startup in history, with no clear path to profitability". Many of these companies are now looking to follow with their own IPO.
Adding to investor worries about Uber's listing is the lackluster performance of Lyft, its biggest rival in North America.
Dara Khosrowshahi, Uber's chief executive officer, said in an interview on the floor of the exchange Friday that trade tensions between the United States and China played a role in the stock's weak performance.
Uber closed at US$41.57, giving it a market capitalisation of just US$69.7 billion on its first day of trading.
Uber sold 180 million shares for US$45 each Thursday, after marketing them for US$44 to US$50 apiece.
After the biggest initial public offering of the year, Uber Technologies Inc ended its first day of trading Friday below its last private valuation.
Uber had already lowered its valuation expectations twice in the last two months to address investor concerns over its mounting losses.
Dortmund edge Fortuna to keep title hopes alive
Wolfsburg boosted their confidence going to the relegation play-offs after beating Wolfsburg 3-0 on Saturday afternoon. Hanover went down fighting as goals from Waldemar Anton, Ihlas Bebou and Walace saw them beat Freiburg 3-0.
Equities, yields close lower before U.S.-China trade crunch time
China's top trade negotiator, Vice Premier Liu He, is supposed to begin another round of talks on Thursday with U.S. Trump has said tariffs will be raised on $200 billion in Chinese products from 10% to 25% starting Friday.
2019 iPhone XR to come with dual rear camera setup
You can expect Apple to pack their best mobile processor and the same main camera experience as its more expensive flagship. According to the leaked renders, the front of the iPhone XR 2019 remains largely unchanged when compared to its predecessor.
Investors say they're hesitant to buy Uber's stock out of the box because of what happened with Lyft, and want to see it settle before buying significant amounts of shares, said Dan Ives, managing director of equity research at Wedbush Securities. It also bought shares at a much lower price in a large secondary transaction. The result was a notable contrast from other high-flying IPOs this year, including Pinterest, Zoom Video, and Beyond Meat, which surged in their debuts.
Lyft's falling stock this week put pressure on Uber as it finalized the price of the most anticipated IPO since Facebook's debut in 2012.
"My reaction [to the share price] is if we build and build well, shareholders will be rewarded. We're certainly not measuring our success over a day, it really is over the years", Khosrowshahi told Reuters. She and CEO Dara Khosrowshahi were joined by Uber drivers from around the world and other Uber executives at the NYSE.
Both Uber co-founders, Travis Kalanick and Garrett Camp, were present at the exchange for the opening but absent from the podium during the bell ringing.
The company's road to IPO was marred by several hurdles including increased regulations in several countries and fights with its drivers over wages.
Uber has also weathered controversies including revelations of a culture of sexism and bullying at Uber and US Department of Justice investigations. While the company claimed in a May 9 SEC filing that it believes "drivers are independent contractors", Uber clearly doesn't believe that too hard, because the filing goes on to reveal that Uber has $132 million squirreled away to pay to 60,000 drivers who are suing to be considered employees. As well as the original ride-hailing business, Uber is developing driverless cars and has a food delivery operation, Uber Eats. It's now his job to make good on that promise, guiding the company to growth in new markets and its current ones, and building competitive advantages that eventually generate significant profits.
"The business is unprofitable, new entrants can enter the market, there is potential regulatory risk, and it is very price sensitive". Robert Johnson, professor of finance at Heider College of Business, Creighton University in Omaha, Nebraska said.