Uber share price down 11% on second day of trading

The ridesharing app's stock is down after debuting on Wall Street.

Source: Bloomberg

Uber's debut on Wall Street was disappointing and the ridesharing app’s stock has continued to slide. Uber’s share price has plummeted after its initial IPO listing of $45 a share.

Why did Uber’s share price fall?

Uber stock has fallen after its debut because of the Dow Jones' overall decline after China raised tariffs on US imports. There was also a weaker appetite for tech stocks after the lackluster performance of Lyft stock. Uber chief executive officer (CEO), Dara Khosrowshahi, noted in a letter to employees that they take a long-term view of Uber stock.

‘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 related to our stock. But it is essential for us to keep our eye on the long-term value of Uber for our customers, partners, drivers and investors,’ wrote Khosrowshahi.

How could Uber’s IPO affect other tech stocks?

Uber’s unsatisfactory IPO could be a bad harbinger for other IPO’s launching this year. Marty Wolf, president of investing firm, MartinWolf, said that Uber’s share price difficult could cause trouble for WeWork, the office sharing space company and its plans to go public. That company is similar to Uber in that it has reported large revenue, but also massive losses.

‘I think that [Uber’s IPO] will be a red flag for WeWorks and its road to profitability. WeWork is also a very complex business, it has lots of losses, and it’s not clear how you get to profitability,’ said Wolf.

Uber’s worse-than-expected performance in the US stock market shows that even a tech company with a large valuation like Uber isn’t immune to the unpredictability of Wall Street.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Trade Uber shares

Uber listed its shares on the New York Stock Exchange in May 2019. Find out more about the valuation, as well as how you can trade or invest in Uber stock.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Bid
Offer
-
-
China 300
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.