Uber shares still stalling
The Canadian Press - May 13, 2019 - Business Buzz

Photo: The Canadian Press

NEW YORK — Uber shares were down 8 per cent 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 per cent 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 per cent 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 per cent.


All Business Buzz Stories