Lyft hits record low as Uber slumps in Wall Street debut

Uber by the numbers

Uber by the numbersMore

It assigns a valuation to Uber of $82.4 billion, significantly less than the valuation of up to $120 billion that its investment bankers predicted a year ago.

Uber's IPO came against a backdrop of turbulent financial markets, fueled by the trade dispute between the United States and China, as well as the plunging share price of its USA rival Lyft Inc.

Uber Technologies Inc. raised $8.1 billion in its initial public offering after pricing shares near the bottom of their marketed range.

San Francisco-based Uber sold 180 million shares for US$45 each Thursday, after marketing them for US$44 to US$50 apiece. The lack of positive excitement for the biggest listing of a US technology company since Facebook in 2012 suggests investors are becoming more choosy. -China trade worries. Moreover, smaller rival Lyft Inc's shares plunged this week after its first earnings as a public company.

The stock slumped as USA equities extended losses, leaving the S&P 500 poised for its biggest weekly drop this year as trade tensions between the USA and China dominated global politics and President Trump boosted tariffs on US$200 billion in goods from China. After submitting its confidential filing in December, Uber - along with Lyft Inc. and a host of other hopefuls - was left sitting on the sidelines while US stocks enjoyed the best start to a year in at least a decade.

"Uber is considered the leader and the one in the strongest market position".

Arun Sundararajan, a professor at New York University's business school, said that while going public will give Uber money to capture more of the transportation market, it could also push it to put quarterly targets ahead of its broader ambitions.

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The lackluster market response comes against the backdrop of a spike in trade tensions between the United States and China and increased investor skepticism about Uber's ability to turn profitable soon enough.

And Uber's shares traded back towards the IPO price later in the day on Friday.

"It's a great moment for the company and all the employees who have been working so hard to get here", Khosrowshahi said in an interview with The Associated Press.

Uber has been working with Morgan Stanley to lead its IPO plans, alongside Goldman Sachs Group Inc. - once the company's go-to bank - and Bank of America Corp.

Like numerous IPO class of 2019, Uber is deeply unprofitable.

Uber lost US$3.03 billion in 2018 from operations, and reported a net loss attributable to the company for the first quarter of 2019 of around US$1 billion on revenues of roughly US$3 billion.

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