Uber stock investors better buckle up for bumpy ride

IPO values Uber at twice the size of Ford

Monday is Uber’s first full day of trading after its rough initial public offering Friday when it offered shares for $45 each and saw the stock price promptly drop. Investors in the ride-hail company better fasten their seatbelts: Uber shares are down 7% and trading below $40 before the opening bell.

It’s rare to see shares in a tech company hit so hard on going public. Over the past five years, just 10% of similar companies finished their first day of trading below their IPO price, said Matt Kennedy, senior IPO market strategist at Renaissance Capital, a manager of IPO-focused funds.

Uber’s revenue last year surged 42% to $11.3 billion, but the company admits it could be years before it turns a profit.

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Uber closed Friday at $41.57 and shares in ride-hail competitor Lyft fell about 7%.

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