Uber had an abysmal second day of trading

Startups

It’s not looking great for ride-hailing giant Uber (NYSE: UBER). Today, Uber closed its second day of trading down more than 18.8% from its IPO price at $37.25 per share, with a market cap of $62.2 billion.

Uber, which was previously valued at $72 billion by venture capitalists on the private market, priced its stock at $45 a share for an $82.4 billion valuation last week. On day one, Uber closed at $41.57 a share.

In a memo obtained by CNBC, Uber CEO Dara Khosrowshahi told employees today that, “like all periods of transition, there are ups and downs. Obviously, our stock did not trade as well as we had hoped post-IPO. Today is another tough day in the market, and I expect the same as it relates to our stock.”

Moving forward, Khosrowshahi urged employees to focus on the long-term. He also pointed to the comebacks both Facebook and Amazon made post-IPO.

Lyft has similarly suffered on the public market since its IPO in March. Lyft closed the day at $48.15, with a market cap of $13.8 billion.

Products You May Like

Articles You May Like

Coinbase adds USDC stablecoin support in 50 countries
At this point, SoftBank Group is really just its Vision Fund
Beyond costs, what else can we do to make housing affordable?
Under the hood on Zoom’s IPO, with founder and CEO Eric Yuan
MultiVu raises $7M seed round for its next-gen 3D sensor

Leave a Reply

Your email address will not be published. Required fields are marked *