Congratulations To Uber, The Worst Performing IPO In US Stock Market History

Uber protest

Uber last raised money from Toyota Motor Corp.in August at a valuation of about US$76 billion.

Uber's IPO came against a backdrop of turbulent financial markets, fueled by the trade dispute between the United States and China, as well as the plunging share price of its US rival Lyft Inc. Lyft was down 4 percent, well below its IPO price. -China trade worries. Moreover, smaller rival Lyft Inc's shares plunged this week after its first earnings as a public company.

Uber's assent to become the world's biggest ride-hailing company has come with a string of scandals which at times threatened the success of an eventual IPO.

C'mon. Literally no one believes that Uber is actually worth $82bn, especially when it continues to lose billions of dollars every year, but everyone was hoping that everyone else would be stupid enough to imagine that everyone else was stupid enough to buy stock.

Uber Technologies Inc. fell in its trading debut, leaving the company's market value below its last private funding round.

Before the opening bell, Khosrowshahi tried to manage expectations for the first day of trading.




Uber may be able to avoid Lyft's post-IPO stock decline because it has a different story to tell other than the potential for growth in ride-hailing, says Alejandro Ortiz, principal analyst with SharesPost. "This would be a template that we could use to help companies with capital formation".

Uber launched its IPO today on the New York Stock Exchange at the very low end of the price range it was considering, $44 to $50 a share, with an initial price of $45 but it fell nearly immediately to $42 a share.

It's not the first time a company's stock has started off trading below its IPO price, not even this week. Uber has never made a profit and warned investors in its prospectus that it doesn't know if it ever will.

Uber's stock was trading at about three per cent lower than its IPO price Friday afternoon.

The ride-hail giant finished its first day of trading on the New York Stock Exchange down almost 8 percent - making it the worst IPO for a marque name in at least a decade. A recent regulatory filing by Uber showed combined losses from operations of more than $12 billion from 2014 through 2018.

The company weathered controversies including the unearthing of a culture of sexism and bullying at Uber to a US Department of Justice federal investigation, which culminated in the resignation of co-founder and Chief Executive Travis Kalanick in 2017. Its revenue previous year surged 42% to $11.3 billion while its cars completed 5.2 billion trips around the world either giving rides to 91 million passengers or delivering food. Uber then hired Khosrowshahi to lead the company.

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