Uber today launched its long awaited initial public offering on the New York Stock Exchange, but quickly underwhelmed investors hoping it would zoom past its targeted price per share of $45.
Uber’s stock wound up closing at $41.57, off more than 7% than its opening target price of $45 and its opening price, $42.
Although the broader market’s issues underpinned Uber (the Dow Jones Industrial Average was down as low as $360 Friday morning on China trade talks concerns.) Questions about the viability of the ridesharing business, the disappointing results from its peer Lyft’s IPO, and Uber’s future earnings possibilities also weighed on its stock today.
Uber and the tech sector had a lot on the line with today’s IPO launch. Sales of those 180 million shares of its common stock would have brought in $82.4 billion, making it one of the largest IPOs ever offered. For tech investors, a successful launch would have been a good sign for other tech startups hoping to launch their own IPOs. Uber follows Lyft and Zoom having launched IPOs so far this year.
Analysts caution that one day does not decide the company’s fate, especially one that took ten years to get to this point.
“It’s amazing what [Uber has] built, but they are still not doing it. They’ve been subsidizing the business,” said Renaissance Capital principle Kathleen Smith, in an interview this morning on CNN. “The boat doesn’t float on its own bottom.”
This is a developing story. Will be updated as needed.