Uber stock investors better buckle up for bumpy ride
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.
Uber closed Friday at $41.57 and shares in ride-hail competitor Lyft fell about 7%.