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A former Uber executive trying to explain the poor performance of the company on its first day of trading in the market blamed the downfall on investors who "do not understand the story of Uber".
Emil Michael, former executive vice president of business at Uber, said the market was failing to appreciate the value of less visible areas of business, such as the autonomous technology division, which he said would boost future growth.
Michael was speaking with CNBC's "Closing Bell" show while Uber was ending his day at $ 41.57 per share, a 7.62% drop from the price of his IPO of 45 dollars.
The former executive left Uber during a tumultuous reshuffle of management in 2017, which also saw the departure of CEO-founder, Travis Kalanick, but retains shares of the company.
You can watch his interview here:
Michael said:
"So, I think what you are seeing is that investors still have to understand a little Uber history. I think what investors have not seen. .. you get Uber. "
"And what they do not have is the autonomous technology division, which was worth just $ 7.5 billion two weeks ago, with a $ 1 billion injection of funds, the investments it has in the other carpool companies around the world. as this goes out, I think you will see some recovery. "
Business Insider pointed out that the timing of the Uber offer was extremely unfortunate before the market opened on Friday, and that it could be argued that the market turmoil had weighed on performance.
S addressing the Financial Times, Dara Khosrowshahi, CEO of Uber, presented a similar analysis: "One day we will not measure our success … You can not control the week in which you have been publicly announced, President and China that has created a lot of volatility and uncertainty. "
According to Business Insider's Troy Wolverton, the IPO "was not calamitous, it was a disappointment, and its effects could last long after the closing bell that struck the first day of trading."
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