Uber shares fall by up to 12% against backdrop of US-China tensions
Low of $36.58 values ride-hailing giant at about $14 billion less than IPO price of $45
Uber stock “did not trade as well as we had hoped post-IPO”, chief executive Dara Khosrowshahi wrote in a memo to employees. Photograph: Josh Edelson/AFP/Getty Images
Uber Technologies’ shares fell as much as 12 per cent on Monday, more than doubling their losses since the ride-hailing giant’s poorly received Wall Street debut on Friday and raising more questions about investors’ faith in its ability to make profits.
The fall in shares come against the backdrop of a global stock market sell-off sparked by renewed trade tensions between the United States and China.
The stock hit a low of $36.58, valuing the company at about $14 billion less than the IPO price of $45. At 3pm, it was still trading around $36.70.
The stock “did not trade as well as we had hoped post-IPO”, chief executive Dara Khosrowshahi wrote in a memo to employees that was seen by Reuters. “Today is another tough day in the market,” Mr Khosrowshahi said. “As the market sees evidence, sentiment will improve, and as sentiment improves, the stock will follow.” – Reuters