The former president at New York Stock Exchange (NYSE), Thomas Farley, opened up about Uber IPO failure in correlation with the timing that the ridesharing giant chose for going public.
As Farley claims, and as more than several analysts claimed even before Lyft’s public debut, Uber should have launched their IPO earlier in 2019 instead of going public in May.
Alongside several more factors that appeared to have determined the failure of Uber IPO, former NYSE president claims that the timing for Uber IPO was more than crucial in weighing failure over success.
NYSE Former President Claims Uber’s IPO Date Was a Bad Day for IPO
Referring to the fact that Nasdaq Composite Index, Dow Jones Industrial Average and S&P 500 Index had the worst week in 2019, Thomas Farley stated that Uber definitely chose a bad timing for going public.
Additionally, at the same time when Uber went public, trading at the lower end of share price estimates, almost all major stocks fell by at least -1%, confirming Farley’s theory.
Moreover, Farley shared his thoughts on the timing, claiming that Uber should have chosen an early start of the year 2019 for going public.
There are also indications that Uber might have had a smoother first-day trade if the ridesharing giant went public before its main challenger, Lyft, that lost -24% of share price on the first-day trade at the end of March.
Facebook Early Investor Claims Uber IPO Was a Potential Train Wreck Within Its Debut
Uber IPO has been compared to Facebook going public back in 2012 at an estimated value of 104 billion dollars, said to be the biggest IPO in years.
However, one of Facebook’s early investors, a co-founder at Elevations Partners LP, Roger McNamee, stated that Uber IPO was a potential “train wreck” since the beginning of the first sale.
Based on Uber’s failure to meet the estimate of raising at least 8.1 billion dollars, many investors shared McNamee’s opinion.