Uber slides at open following last week’s rocky debut

Uber slides at open following last week’s rocky debut

Lyft and Uber drivers in multiple cities around the world held rallies, multiple-hour stoppages, and two-day work strikes in Atlanta, Boston, Chicago, Connecticut, Los Angeles, New York City, Philadelphia, San Diego, San Francisco, Washington, D.C., and in cities in the U. K.

The ride-hailing business priced its stock at $45 a share on Thursday, giving the company a valuation of $82.4 billion.

Lyft shares fell three per cent to US$49.38, and have given back some 30 per cent since the company's market debut in late March.

Among the recent big investors - and perhaps losers - is PayPal, which had disclosed plans to buy $500 million in Uber stock at the IPO price of $45.

"We believe Uber is off to a choppy trade on the heels of the Lyft train wreck out of the gates and general investor nervousness on the U.S./China [trade war], risk-off worries in this market", Uber bull and Wedbush Securities analyst Dan Ives tells Yahoo Finance.

Despite a weak IPO, Lyft's quiet period recently has ended and many underwriters issued fairly positive calls on the ride-sharing firm. Investors are waiting to see the stock settle before accumulating significant positions, according to Ives.

Trading opened at $38 per share and by midday, Uber's stock was down roughly 20% to $36 a share.

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Third, the lack of loyalty from Uber's drivers was evident in a worldwide strike ahead of its IPO and poses a "driver loyalty question", Schulze said. Throughout that first day of trading, it didn't get much better.

It's no surprise, then, that Uber CEO Dara Khosrowshahi sent a reassuring letter to employees on Monday, first obtained by New York Times reporter Mike Isaac.

Asian stocks and European shares edged lower Monday as global markets await details of how China will retaliate against the US after President Donald Trump moved to further hike tariffs on Chinese imports late last week. Uber was hoping to launch higher and stay up, but so far that's not happening.

Others on the Street are unsure.

It's a sobering moment for the ride-hailing company.

Lyft posted a $1.1 billion quarterly loss last week and forecast losses would peak this year as it controlled expenses and got more revenue from each customer. Marty Wolf, president of investing firm, MartinWolf, said that Uber's share price hard could cause trouble for WeWork, the office sharing space company and its plans to go public.

Good luck to you, Mr. Khosrowshahi.

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