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Uber shares fell on the first day after IPO

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On the eve of entering the stock market, which took place on Friday, May 10, Uber managed to sell almost 180 million shares, $ 45 each, which helped attract more than $ 8.1 billion in additional investments. As a result, Uber’s market capitalization has reached $ 82 billion.

However, on the morning of May 10, during the opening of the first day of trading, the price of one share dropped to $ 42, and by the evening, it dropped to $ 41.57, which is 7.6% lower than the initial IPO price.

Uber could not justify analysts’ forecasts. In particular, Bloomberg estimated the company at $ 120 billion.

However, despite this, the initial placement turned out quite successful for the company. Now on the balance sheet of the company is $ 8.1 billion, which can be invested in growth, and the new market capitalization of Uber makes its entry into the stock market one of the brightest in history and represents a landmark event for technology and the economy as a whole.

Experts point out several reasons because of which the value of shares has changed. The main reason was the decline in the value of the securities of the taxi order service Lyft, which is the main competitor of Uber. Note that trading in Lyft shares began on March 29, 2019. Then the share price was $ 72. After the end of trading on May 9, the price of Lyft shares fell by 23%.

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