The IPO wheel of fortune is spinning, but only a few have managed to cash out this year so far…And Uber isn’t one of them. Ouch!
Uber’s public market debut went off on Friday, and despite listing near the bottom end of its range, still managed to make a loss. After entering at $45 per share, the company slipped a substantial 7.8% to settle at $41.49 by the end of the session.
As was widely predicted, Uber followed in the footsteps of its main rival, Lyft, as investors showed their distaste for companies listing while still losing money hand over fist and showing no signs of reaching profitability in the near future. Well, that’s a bit of a no-brainer.
On the other side of the wheel, however, we have Pinterest and Beyond Meat who came out of the blocks running with solid starts in the green. These two have been the unicorns in an IPO market full of donkeys in 2019, and despite taking a hit last week, still look poised for strong gains to come.
This week will be an important one for Uber as it dips its second foot into the market today. A second day of punishment could set the tone for a tough number of weeks ahead as the company adjusts to public life. However, a strong day to eclipse the losses made on Friday could give investors hope that the stock might escape donkey status and join the other unicorns….But the latter seems like a tall order at this stage.
Let’s see what comes out in the wash!
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