Shares were priced at $45, toward the low end of the $44-$50 range the company had previously specified; the stock opened at just $42 and slipped as low as $41.06.
"It's a great moment for the company and all the employees who have been working so hard to get here", Khosrowshahi said in an interview with The Associated Press. But it was tough going. The IPO also comes as investors shy away from riskier assets given U.S.
Khosrowshahi pitched the company during its IPO roadshow as the Amazon of transportation.
"Honestly, I think that it has to do with Lyft". On Thursday, Axcella Health began trading well below its $20 IPO price and ended its first day at $13.80.
Japan's SoftBank Group Corp, for example, invested in Uber in early 2018 at US$48.77 per share. Retail investors at TD Ameritrade executed more trades in the first ten minutes of Uber's debut than in Lyft's first 2-1/2 hours. According to Reuters, in its IPO filing, Uber said, "As we aim to reduce driver incentives to improve our financial performance, we expect driver dissatisfaction will generally increase".
Kennedy points out that unlike Facebook, however, Uber hasn't been turning profits. While Uber briefly clawed back nearly all its losses by early afternoon, the comeback ultimately proved to be short-lived. But even with Uber's lower share price, its valuation of $76 billion is four times more than Lyft's. Lyft was down four percent, well below its IPO price.
After all the hoopla surrounding Uber Technologies's $8.1 billion initial public offering, investors in the ride-hailing company must have been less than thrilled as its shares debuted with a resounding thud.
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The self-inflicted wounds included complaints about rampant internal sexual harassment, accusations that it stole self-driving auto technology, and a cover-up of a computer break-in that stole personal information about its passengers.
"Uber is considered the leader and the one in the strongest market position".
Both Uber co-founders, Travis Kalanick and Garrett Camp, were present at the exchange for the opening but absent from the podium during the bell ringing. As of Friday's closing price, his stake in Uber will be worth $4.9 billion.
"Does Uber become the next Amazon?"
"The sound you hear of the stock dropping is the sound of the bubble bursting for high valuations in the private markets", said Renaissance Capital's Kathleen Smith, an ETF Manager with a focus on IPOs.
There are a few reasons why Uber's shares failed to rise.
Uber, since its inception in 2009, has faced a bumpy ride with lack of visibility on profitability, and slowing growth muting investor expectations, but yet was one of the most highly-anticipated IPOs of all time.