[ad_1]
In retrospect, the decision of ousted founder Travis Kalanick to watch some of the early trade with friends and current / former Uber employees around a coffee shop at the NYSE was a wise decision – who would want to see a day the bloodbath of a company once supposed to be worth more than 120 billion dollars?
<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "What happened"data-reactid =" 17 ">What happened
<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "With President Donald Trump dropping commercial war bombs on the leaders of Chinese officials via Twitter and rival Lyft (LYFT) continues to be a disaster, after its IPO at the end of March, the day of IPO Uber for lack of words better assimilated. "data-reactid =" 18 "> President Donald Trump unleashes commercial bombs on top of Chinese officials via Twitter and his rival Lyft (LYFT) continues to be a disaster after its IPO at the end of the month March, the day of IPO of Uber, lack of more precise words.
The retail company valued its action at $ 45 a share on Thursday, giving it a valuation of $ 82.4 billion. Uber began trading Friday morning at about $ 42 a share. At the close of the market, Uber shares fell by 7.6%, from the price of its IPO to 41.57 USD.
"We believe that Uber is engaging in an unstable business in the wake of the wreck of the Lyft train and the general nervousness of investors in the United States and China. [trade war]Dan Ives, an analyst at Uber Bull and Wedbush Securities, tells Yahoo Finance.
Ives said many investors with whom he spoke were reluctant to buy Uber "out of the box" given Lyft's hard times since his IPO. Investors are waiting to see the stock stabilize before accumulating significant positions, according to Ives.
It will be interesting to know when Uber's action will decide to settle.
The company should not be profitable any time soon. Uber's ability to maintain its independent provider model for its drivers continues to raise concerns. And we can argue that the company does not have a gap around anything – capital is simply invested to generate a quarterly market share in the fierce battle with little Lyft.
<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Wall Street reacts"data-reactid =" 24 ">Wall Street reacts
Uber CEO, Dara Khosrowshahi, arrives on the New York Stock Exchange for the IPO of his company on Friday, May 10, 2019. (AP Photo / Mark Lennihan)
Wall Street analysts have mostly remained optimistic about Uber before its IPO. It is unlikely that this influential crowd will change their minds because of the slowness of the early days of negotiation. But if the weakness of the title persists in June in the run-up to Uber's first earnings report, the analyst community may not have any choice but to change direction.
For the moment, a bull like Ives keeps the course.
"We are not worried that the stock is turbulent today on the first day of its price and we continue to believe in the valuation of coins. This title is worth more than 100 billion dollars. We would be buyers here despite the hectic technology and market concerns. "Supports Ives. "We believe that this weakness of Uber shares will not be lengthened because the fundamental value of this franchise is significantly higher than these levels, in our opinion."
Ives think Uber is not unlike Amazon or Facebook – a true number one player in an industry he's pioneered. It is for these reasons, according to Ives, that Uber's long-term valuation is probably higher and that one day firm offers on the stock represent nothing.
Others in the street are uncertain.
"The Wall Street message is clear: the appetite of investors for companies that come to hail is not what we expected," said Jasper Lawler, head of research at London Capital. Group.
Even the management of Lyft, which said this month in its first call for results with analysts, that the maximum losses recorded in 2019 did not accelerate the decline of the title. Given Lyft's inability to convince people to jump into the stock by 23% since the day of its IPO, it's hard to see how Uber's leadership wins the battle against a group of first bears.
Good luck to you, Mr. Khosrowshahi.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Read Brian Sozzi's latest news:"data-reactid =" 44 ">Read Brian Sozzi's latest news:
[ad_2]
Source link