Uber has been impressively leaving a mark in the ride-sharing world for the last few years now. While they have been killing it on the business side, they have not until recently, opened their own stock for share sales.
Uber professionals were surprised as headlines were published about Uber shares being taken. Less then a month ago, users shares became public which sparked the interest of investors everywhere.
Ubers Trading Debut Sparks Interest
Within just a few weeks of being live to the public, Uber had sold 50% of their shares. Between May 15th (when 50% of shares had been sold) and now, 70% of shares available to be bought were bought! Uber is not being referred to as the ‘biggest and most influential IPO of the year”.
With the impressive numbers they have been able to pull in, this reference is no surprise.
Will Uber Continue To Do Well?
Even with the impressive information on the shares bought, Uber is being questioned. Will Uber continue to do well? Or will the ever so popular ride-sharing app fall instead of rising?
Samuel Pierson is afraid for the company because of the potential fees. He expresses his concern by stating, “The utilization of lendable shares reaching 70% generally coincides with a marginal increase in borrow costs.”
He continues in his email by saying, “Once utilization reaches 80%-90% borrow costs often become a meaningful consideration for short sellers.”
Will Lyft Surpass Uber In 2019?
Lyft, like Uber, is a popular and well trusted ride-sharing app that allows users to select a ride. Both of these apps recently in larger cities have grown and developed.
Lyft stocks have been around for a longer time, meaning they have history to analyze. As of now, Lyft has a better post-debut decline percentage. While that is true, Uber has seen more ‘short interest’ over the past week.