Uber, the second ride-hailing cab to list on the US stock markets, was in for a surprise on Friday after being slammed by more than 7-percent on its debut. The shares, priced at $45 in the IPO opened more than 6.6-percent lower at $42, managed to surge as high as $44.85 before sliding back to end its debut session at $41.57, more than 7.6 percent below its IPO price.
The hype surrounding Uber’s IPO was nothing short of a masterstroke with the stock compared to some of the leading tech giants like Facebook, Netflix, Amazon and Apple. However, when Friday’s closing bell sounded, the most talked about IPO was included in the league of a small, select group of companies that floundered on the first day of listing in the secondary markets.
Coming to the stock’s dismal performance, the debut coincided with the broad US market sell-off on Friday morning and the weak earnings announcement by rival Lyft added to the uncertainty surrounding the profitability of ride hailing cab companies. However, going by historical trends, Uber’s journey has just begun, and for all the wary investors, it might only be a matter of time before the stock turns around.