It appears that almost every investor expected Uber to “pop” on the first day during its IPO opening sale, however, Uber share price went south instead.
From the very beginning of the trade on Friday, May 10th, Uber share price started at the lower end of the previous share price estimate, starting the sale at 42$ instead opening the sale between 45$ and 55$.
Uber thus took a spot among worst IPO opening sales in oppose to the overall predictions that Uber might be the biggest IPO of 2019 and beyond.
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Uber Takes Place of the Fourth-Worst IPO Start in the Last 10 Years
Regardless of how disappointing was the very start of Uber IPO sale, perhaps an even more disappointing moment for Uber Technologies was the fact that their IPO joined the top list of bad starts in the last decade.
In the course of the last 10 years, Uber was placed at the 4th place as one of the IPOs with most disappointing starts, referring to the failure to meet investors’ expectations during Uber opening trade.
Uber dropped by over -7% during its IPO debut, joining the infamous list, which includes IPOs with offers of at least 1 billion dollars, that had at same time lost at least -5% of share price on the first day from January 2010 to May 2019.
ZTO Express Cayman, iQIYI, and ADT are listed before Uber on the list of top IPO first-day fails.
Uber Avoided the Title of the Worst IPO of the Decade
Even though things are not looking great for Uber (UBER) shares, the company dodged a bullet by not becoming the worst IPO of the decade.
Uber is still not profitable with recording losses in financial reports; however, some analysts indicate that shares such as Uber and Lyft could rebound as the ridesharing sector is maturing.
