Another day another equity episode. This time it was an emergency episode, because Uber (finally) went public and a lot of financial people were anxious to know how it would perform on opening day. Turns out, he didn’t do so well.
Kate and Alex had a lot of questions about why? Was it the fault of the company? Was it just the macro market? Was it something else entirely? And then there was the fact that it wasn’t a great week for the stock market or US-China trade relations.
But don’t cry for Uber. As Kate Clark reported, the auto transport company still has $ 8.1 billion to play with and become a more profitable company.
And now we see how Uber navigates public markets.
Kate: Uber was a different story. [than Lyft]. I think we expected a really similar pricing scheme, but we saw Uber set a price range of 44 to $ 50 per share. And ultimately, they’re priced at $ 45 a share only to sink quite significantly early on. They started trading this morning at $ 42 per share and are now
Kate: Yes. Now they are what? Hovering around $ 41. So they’re falling. I think everyone is a bit surprised by that.
Alex: Yes. So the reason we thought they were going to increase his rank was because he felt a bit conservative. The IPO target range of 44 to $ 50 a share for Uber seemed almost a mulligan. Like, “We’ll put it out there. We’ll get the required 3X at the top end.” We’ll go up the range by four or five dollars a share, we’ll put it on the top, we’ll get the valuation where we want it. “
Alex: And seeing them cost 45 is shocking.
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