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(Bloomberg) – Uber Technologies Inc.'s shares fell further after a stormy start on Friday as part of the largest public offering of the year.
The portage giant fell 5.8% to $ 39.11 at 7:51 am New York time in trading before the US stock markets opened. The San Francisco-based company sold 180 million shares at $ 45 each Thursday. It never traded above this price, closing the day down 7.6% to 41.57 dollars, even as the other shares rose.
The stock's decline reflects investors' skepticism about the size of the market, Uber's ability to deliver food and parcels, and its transition to autonomous vehicles, said Ygal Arounian of Wedbush Securities. . The IPO also comes as investors avoid riskier assets given the trade tensions between the United States and China, said the analyst, who outperformed Uber and estimates that the title will reach $ 65. next year.
"Uber's highly anticipated stock market listing on Friday was clearly not a" storybook debut, "wrote Arounian. Uber is a situation "prove me and is not going to be a success story overnight".
Carpool sympathizer Lyft Inc. gave way to Uber's sympathy Friday, dropping 29 percent since its debut in March. This slide showed no signs of slowing down on Monday as stocks again lost 2.3% early in the session. Lyft was sinking at the close of last week after its initial results disappointed the market.
Uber must run flawlessly over the next 12 to 18 months. If that is the case, a market value of $ 100 billion or more is possible, said Arounian. The company should be able to turn its carpool platform into "a broader consumer driver that includes the delivery of food and freight," he said. The company had a market value of $ 69.7 billion at closing on Friday.
Tensions in the broader market continued until Monday, as Asian equities and European equities fell slightly as the market expects details on how China will react to US rising rates.
(Price updates in 2nd paragraph.)
To contact the reporters on this story: Jeran Wittenstein in San Francisco at [email protected], Sam Unsted in London at [email protected]
To contact the editors responsible for this story: Catherine Larkin at [email protected], Phil Serafino, Paul Jarvis
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