Uber gets hit again; shares below $40

Uber’s revenue last year surged 42% to $11.3 billion, but the company admits it could be years before it turns a profit.

13 May 2019 | 19:31

Source: Associated Press

  • Source: Associated Press
  • Last update: 13 May 2019 | 19:31

Uber CEO Dara Khosrowshahi center, shakes hands with a trader after his company's initial public offering begins trading at the New York Stock Exchange, Friday, May 10, 2019. (AP Photo)

NEW YORK: Uber shares are down 7% and trading below $40 before the opening bell.

Monday will be the ride-hailing company’s first full day of trading after its rough initial public offering Friday when it offered shares for $45 each.

It’s rare to see shares in a tech company hit so hard on going public. Over the past five years, just 10% of similar companies finished their first day of trading below their IPO price, said Matt Kennedy, senior IPO market strategist at Renaissance Capital, a manager of IPO focused funds.

Uber’s revenue last year surged 42% to $11.3 billion, but the company admits it could be years before it turns a profit.

Uber closed Friday at $41.57 and shares in Lyft fell about 7%.

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