Uber began its first day of trading as a public company on the New York Stock Exchange on Friday, debuting slightly below its intial share pricing amid market volatility and concerns about its ability to transform from tech darling to profitable mainstay.
The ride-sharing giant priced shares at $45 ahead of its debut as it sought a valuation of roughly $82 billion. Trading began at roughly $42 per share. Analysts initially expected Uber to pursue a valuation of up to $120 billion. Even at the lower share price, Uber’s IPO is one of the largest in U.S. markets history.
Uber’s main services include its ride-sharing business, its food delivery service “UberEats” and a shipping fulfillment arm called “Uber Freight.” The company is also one of several firms developing autonomous driving technology.
|UBER||UBER TECHNOLOGIES INC||43.19||-1.81||-4.03%|
Uber is trading on the NYSE under the ticker “UBER.” The company said it had 91 million registered users on its platform as of the end of 2018.
Uber’s ability to turn a profit amid massive spending was a chief concern for investors ahead of the debut. Revenue grew 42 percent to $11.3 billion in fiscal 2018, but Uber said it lost $1.8 billion, excluding some transactions, and spent $14.3 billion last year in the lead up to its IPO.
In its S-1 filing, Uber said it has “incurred significant losses since inception” and could not guarantee if or when it will turn a profit.
“We expect our operating expenses to increase significantly in the foreseeable future, and we may not achieve profitability,” the company said.
The company’s debut came weeks after its top rival, Lyft, began public trading at a $24 billion valuation. After an initial surge in prices, Lyft shares have struggled in recent weeks amid concerns about profitability.
Uber began trading amid weakness in the broader market. The Dow Jones Industrial Average was down more than 150 points as of this afternoon amid concerns related to the U.S.-China trade dispute.