stocks are hitting Wall Street today in an IPO that valued the company at US$82.4 billion. Uber is selling initial shares at $45 a piece and raised US$8.1 billion in the biggest IPO in five years, since Alibaba went public in 2014 in an even larger public offering.
Fellow rideshare company Lyft, which went public in March in a somewhat smaller IPO, had sold shares for a much higher USUS$72, but prices came crashing down soon after. The release of the Q1 number didn’t do anything to stop the downwards spiral because of negative earnings. The poor performance of its competitor has reportedly made some buyers wary of Uber stock also.
Yet, Lyft stock has only been public for some weeks. A look at Facebook stock, which was introduced to the NASDAQ in 2012, shows how success can come over time. Shares of the company were sold at US$38 on day one and reported losses until mid-2013. Currently, they are trading at approximately US$170 a piece.