Uber CEO Dara Khosrowshahi center, shakes hands with a trader after his company's initial public offering begins trading at the New York Stock Exchange, Friday, May 10, 2019. He is flanked by Uber's Chief Legal Officer Tony West, left, and board member Ryan Graves, right. (AP Photo/Richard Drew)

Uber gets hit again; shares below $40

May 13, 2019 - 8:33 am

NEW YORK (AP) — Uber shares are down 7% and trading below $40 before the opening bell.

Monday will be the ride-hailing company's first full day of trading after its rough initial public offering Friday when it offered shares for $45 each.

It's rare to see shares in a tech company hit so hard on 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%.

AP Editorial Categories: 
Comments ()