Recently, the CEO of Uber rang the New York Stock Exchange’s opening bell, which is considered as a significant remark for trade commencement. After the session ended the share price of Uber came down to $41.51. The company had placed the price per share of about $45.
Back on May 9, 2019, Uber sold more than 150 million shares and raised a net value of around $8.1 billion. According to analysts, it is not a good start for the company as it had opened around $42 per share and then dropped down to $41.06.
Recently one of the analysts has also warned people that Uber may suffer further loss in the future. The Company has already lost $9 billion since its inception back in 2009. In a public speaking event, Mr. Khosrowshahi tried to convince shareholders not to lose hope. He also said that shareholders should consider the profits which they will get from long term investment as the company will gain considerable market share in the future. The CEO of Uber also blamed the instability of the global economy as a sure cause with which the company’s shares have witnessed major fluctuations.
Stakeholders are also lured to invest their money in the company as it has started to diversify itself into several other sectors viz. food delivery and automated cabs. Few analysts are also trying to find a solution which would help Uber and companies like it to offer Initial Public Offerings. Analysts are trying to find the price per share which they should place so that it would turn fruitful for them.
Moreover, the immediate rival of Uber, Lyft is also suffering from great loss since it had offered IPO back in March 2019. After seeing what had happened to Lyft, Uber’s underwriters placed the rate per share around $45 but still, they still have to face a loss right on their first day at the stock market.