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The stock price of Uber Technologies (NYSE: UBER) suffered a steep decline in its second day of trading following a disappointing initial public offering (IPO).

On Monday, UBER shares closed $37.10 each, down by 10.86 percent. After-hours, the ride-hailing company’s stock price declined another 0.75 percent to $36.82 per share.

Since its IPO, Uber already lost 19 percent or $8.18 of its stock value from its offering price of $45 per share. The ride-hailing company’s current market capitalization is around $62.22 billion, according to data from Google Finance. The figure is barely half of its previously reported target market valuation of up to $120 billion.

Uber IPO is similar to Amazon and Facebook’s experience says CEO Khosrowshahi

Uber’s CEO Dara Khosrowshahi is anticipating that the company’s shares will continue to slide over the coming months. He cited the fact that tech giants Amazon.com (NASDAQ: AMZN) and Facebook (NASDAQ: FB) also struggled after its market debut.

Khosrowshahi believes that Uber is going through a similar experience. He expressed optimism that the ride-hailing company will eventually recover because it has “all the capital” it needs to “demonstrate a path to improved margins and profits.”

In a letter to Uber employees, Khosrowshahi wrote:

“Like all periods of transition, there are ups and downs. Obviously our stock did not trade as well as we had hoped post-IPO. Today is another tough day in the market, and I expect the same as it relates to our stock.”

“Every stock is valued based on the projected future cash flows/profits that the company is expected to generate over its lifetime. There are many versions of our future that are highly profitable and valuable, and there are of course some that are less so. During times of negative market sentiment, the pessimistic voices get louder, and the optimistic voices pull back.”

Additionally, Khosrowshahi stated, “Remember that the Facebook and Amazon post-IPO trading was incredibly difficult for those companies. And look at how they have delivered since.”

“Our road will be the same. Sentiment does not change overnight, and I expect some tough public market times over the coming months. But we have all the capital we need to demonstrate a path to improved margins and profits. As the market sees evidence, sentiment will improve, and as sentiment improves, the stock will follow. We will not be able to control timing, but we will be able to control the outcome.”