Several Wall Street analysts commented that the timing of the Uber IPO was bad and noted that all major stock markets in the U.S. dropped this week.
Daniel Ives, managing director of equity research at Wedbush Securities, commented, “We believe Uber is off to a choppy trade on the heels of the Lyft train wreck out of the gates and general investor nervousness on the US and China [trade war], [and investors’ worries about risk].”
Additionally, Ives said, “Institutional investors we speak with are hesitant to buy this out of the box given what happened with Lyft and want to see it settle before accumulating significant positions, especially with the market worried about broader issues and valuations suffering with [investor risk worries] in tech across the board this week.”
Earlier this week, Warren Buffett, Chairman and CEO of Berkshire Hathaway, told CNBC that he is not buying into the Uber IPO after reviewing its business 18 months ago. He also made it clear that Berkshire never bought a new issue over the past 54 years.
