Uber shares fall for second day after ill-fated IPO
Questions persist about company’s ability to make profits
Bengaluru — Shares in Uber Technologies were set to fall another 7% on Monday, doubling losses since its poorly received Wall Street debut on Friday and raising more questions about investors’ faith in its ability to make profits. The move, which came amid a wide-ranging selloff on global financial markets spurred by more US-China trade tension, pointed to shares opening at $38.54, valuing the company at almost $11bn less than Friday’s debut price of $45. By mid-morning in New York, the shares were down 6.62%. Before going public, Uber lowered its valuation expectations twice in two months to address investor concerns over the company’s mounting losses, and priced its initial public offering (IPO) at the low end of the targeted range. Rival Lyft, which went public at $72 a share on March 29, has lost a third of its market value since and was down 3% at $49.50 in trading before the bell. Both IPOs took place against a backdrop of renewed concerns on Wall Street over global growth du...
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