Uber shares fall for second day after ill-fated IPO

Uber shares fall for second day after ill-fated IPO

While both Uber and Lyft are trying to find ways to lower driver costs to become profitable, drivers went on a protest in several USA cities earlier this month demanding job security, livable incomes and a cap on the amount ride-hailing companies can collect from fares.

With President Donald Trump dropping trade war bombs on the heads of Chinese officials via Twitter and rival Lyft continuing to be a disaster, Uber's IPO debut stunk.

This could be valuable knowledge as we look ahead to more tech companies moving towards going public.

Chief executive Dara Khosrowshahi is expected to ring Wall Street's famous opening bell, amid reports that Kalanick - who resigned as its boss following a string of scandals in 2017 - will not appear for the Friday morning ceremony. Not helping sentiment for Lyft is the bad momentum in the stock post its own late March IPO and U.S.

Ives says many investors he spoke to were hesitant to buy Uber out of the box given the beating Lyft has taken since its IPO.

If Slack's upcoming IPO performs well, it may serve as further evidence the market has a "ride-hail problem, not a unicorn problem, Primack said".

It will be interesting to see when Uber's stock does decide to settle.

Uber has had no trouble convincing venture capitalists to pour money into its earlier funding rounds, but with its unclear path to profitability, it's having a more hard time with Wall Street investors. Concerns continue to mount on Uber's ability to sustain its independent contractor model for its drivers.

The ride-hailing giant's stock fell 10% and hovered around $37 Monday afternoon on Uber's first full day of trading. Throughout that first day of trading, it didn't get much better.

Uber, prior to its IPO, publicly stated that it will reduce driver incentives to improve the company's financial standing in a recent S-1 filing. Today is another tough day in the market, and I expect the same as it related to our stock.

Jay Ritter, a University of Florida professor of finance specialising in IPOs, said it was highly unusual for a high-profile company like Uber to fall so quickly. Regulators and legislators around the world argue that's already happened in many corners of technology, with Facebook having a seemingly impenetrable stronghold in social networking, Google dominating search and Amazon controlling a wide swath of online shopping.

Others on the Street are unsure.

Even Lyft management proclaiming on its first earnings call with analysts this month that 2019 would mark peak losses didn't jump-start the sagging stock.

At $47.84, Lyft's stock remains well below its first trade on its IPO day of $88.60. It appears Uber picked the wrong week to go public.

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