Uber Shares Continue Sliding in First Full Day of Trading

Uber CEO Dara Khosrowshahi, left, talks with specialist Peter Giacchi before his stock begins trading at the New York Stock Exchange, as his company makes its initial public offering, Friday, May 10, 2019. (AP Photo/Richard Drew)
Uber CEO Dara Khosrowshahi, left, talks with specialist Peter Giacchi before his stock begins trading at the New York Stock Exchange, as his company makes its initial public offering, Friday, May 10, 2019. (AP Photo/Richard Drew)

Uber shares were down 8% in morning trading and dipped below $38 after the opening bell.

Monday was the first full day of trading for the ride-hailing company after its rocky debut on the stock market Friday. Its shares had been priced at $45 each.

It’s rare to see shares in a tech company hit so hard upon 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 Lyft fell about 7%.

SOURCE: AP