After its IPO ended on Thursday, Uber’s stock dropped by over 7% on day one of trading as it made its debut on the New York Stock Exchange on Friday, May 10.
Uber’s IPO had been the most anticipated listing to go live this year, coming months after its rival Lyft also went public.
But trading began on a low note, with the company’s stocks trading at $42 per share, lower than its IPO’s lowest pricing range of between $44 and $50. The cab-hailing company had priced its IPO at $45 but saw it close below $42, bringing its market cap to $69.7 billion.
Uber’s IPO valuation was $82 billion, nearly $40 billion less than the $120 billion that the company reportedly eyed in its proposal for a potential initial public offering. Incidentally, the firm’s private valuation put it at around $76 billion.
The UBER stock made its NYSE debut at a time the general market is grappling with difficult conditions exacerbated by the trade tensions between the U.S. and China.
For example, the Dow Jones Industrial Average dropped by over 300 points on Friday following U.S. President Donald Trump’s tweet that there was “absolutely” no need for the U.S. to rush in its trade talks with Beijing.
The market was only able to mount a recovery after U.S. Treasury Secretary Steven Mnuchin termed the day’s talks with the Chinese delegation as having been “positive.”
Uber and its rival Lyft have faced increased scrutiny in recent months after both companies continued to post major losses in their respective earnings results. Like Uber, Lyft also traded more than 7% in the red on Friday. The company’s stock, however, lost over 20% of its value on its trading debut back in March.
Even though not yet profitable, Uber has grown its ridership by 33% year-on-year and is eyeing 2019 as its break-even year. For the company that compares itself to e-commerce giant Amazon, the market could be an avenue that lets it back on the path of profitability.