On Monday, the 13th of May 2019, the shares of Uber Technologies Inc. had nosedived as much as 12 percent, doubled up losses since the ride-hailing pioneer’s poorly perceived market debut, while its CEO had been quoted saying on Monday (May 13th) that the stocks would unlikely to turnaround over the coming months.
Unfortunately, Uber made its public market debut at such tumultuous market backdrop, while almost all of the US sectors had been met with steep plunge, and Uber Technologies had not been any different. Latest leg of steep sell-off pressure had largely been catalyzed by an escalating trade tension between United States and China, tottering the market sentiment mercilessly.
Nevertheless, on Monday (May 13th) market, the shares of Uber had hit a record low of $36.58, curbing down the company’s market cap below $70 billion level after witnessing a public debut at $82 billion or $45 per share.
Besides, while pressures had been mounting for Uber over the public market, there had been an internal knock-knock within Uber as its Chief Executive Dara Khosrowshahi wrote in an employee-note seen by a press agency reporter, “Uber’s stock did not trade as well as we had hoped post-IPO.
Sentiment does not change overnight, and I expect some tough public market times over the coming months. But we have all the capital we need to demonstrate a path to improved margins and profits”.