Uber IPO Disappoints as Stock Plunges Almost 8 Percent from its Offering Price

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Credits: NYSE Twitter page

Uber Technologies (NYSE: UBER), the largest ride-sharing company in the United States, disappointed investors during its initial public (IPO) offering on Friday.

Uber’s stock plunged almost 8 percent to $41.57 per share from its offering price of $45 per share. The ride-sharing company priced its stock toward the low-end of its target range of $44 to $50 per share because its competitor, Lyft struggled since its market debut.

In an interview with CNBC, Uber Chief Financial Officer Nelson Chai, said, “This was a tough day.”

When asked if they considered delaying the IPO due to the market conditions, Chai commented, “I don’t think that we’re smart enough to try to judge the market. … We weren’t optimizing to have the best opening price or the opening day. We’re really looking for how the stock continues to trade over time and that’s what we’re building for.”

Uber IPO is a victim of volatile market condition

Uber’s IPO is one of the most anticipated this year. However, investors became cautious because of the volatile market condition, primarily due to the current trade war between China and the United States.