Uber Shares Fell by Almost 10% on the First Day of Trading

According to Renaissance Capital, trading in Uber shares on the first day closed 8% below their initial value.

Thus, Uber got to the number of the worst technology companies with an estimate of more than $10 billion over the past decade.

Despite the heavy debut, Uber CEO Dara Khosrowshahi told The Associated Press that the collected $8.1 billion will play a significant role in the company’s future development plans.

Uber’s IPO price was lower than it was expected initially, at only $42.

Such caution on the part of investors may have been caused by growing doubts about the ability of the service to make money, like its main competitor, Lyft, who went IPO six weeks ago.

Although the first day of Lyft trading ended on a positive note, the shares eventually fell, and now they trade almost 15% of the previously announced price.

Why investors do not believe Uber? Perhaps because many of them are concerned about the profitability of Uber, as the company entered the IPO being unprofitable.

We remind you:

Uber Drivers Will Go On Strike Because of the Company’s IPO

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