US

Uber first day at NYSE was terrible

Recently, Uber debuted at New York Stock Exchange (NYSE) which was one of the highly anticipated debuts at NYSE of this year so far but it doesn’t turn out to be good for Uber as the stocks saw a drop of 7.6% on its first day itself.

The ride haling app (NYSE: UBER) was previously valued at $72 billion by venture capitalists and priced it’s stock at $45 apiece for a valuation of $82.4 billion on Thursday while going public. It began trading at $42 per share after pricing its IPO at $45 Thursday night while the stock closed below $42 per share with a market cap of $69.7 billion.

Still, it turned out to be okay for Uber as now the company has $8.1 billion to invest in growth and, ideally, transform into a profitable business.

There were people who projected the valuation to climb to $120 M and they are one of the most disappointed one’s because it came nowhere near to its projected valuation.

Uber’s chief financial officer, Nelson Chai, said, “this was a tough day” on the market in an after the stock began trading. He also said that “they are not smart enough to judge the market”.

We don’t know where these stocks gonna lead but Lyft had a successful journey since March when it completed its IPO. The stock for Lyft is currently trading at $51 per share with the market cap  of $14.6B but the company has registered the loss of more than $1B in its first quarter