Uber Stock Drops To Record 52-week Low Of $26 During Trading Today
Ride-hailing company Uber just can't catch a break. The company's been at the center of one controversy or the other for years. Its former CEO and co-founder Travis Kalanick resigned in 2017 when reports of harassment and discrimination made investors force changes to the company's board.
Then, Uber's stock fell below its $45/share IPO price after the company went public, and once the company's IPO share lockup expired last week, trading volume jumped by 7x within the first two hours following the day's opening. By the end of the day, shares ten times Uber's average daily trading volume had been traded. This Monday, we found out that Mr. Kalanick offloaded 200 million Uber shares during the past week. Now, there's more to the story so head on below for the details.
Uber Drops To 52-week Low Share Price Of $26 One Week After Company's IPO Lockup Expired
Today is a good day for the tech world. Four tech companies are trading above their previous 52-week high share price. At the time of writing, Cupertino tech giant Apple is trading at $263.98, chipmaker AMD is trading at $37.58, one share of Microsft is selling at $147.13 and Sony is up for $62.47. The jumps follow the S&P 500 nearly hitting a record high yesterday following strong performance from Facebook and Disney.
However, despite this general uplift, Uber (NYSE:UBER) isn't doing so well. In a fresh low, the company share price has fallen to $26.34 at the time of writing today. This marks a new low for the stock in the previous 52-weeks and is a '52-week low' as such drops are called.
The drop comes following Uber's challenges in Mexico and Brazil from the Chinese company Didi Chuxing. Uber (NYSE:UBER) and Didi are backed by Softbank, so in this case, it's clear that the bank always wins. Uber's also facing a class-action lawsuit at the moment alleging that the company buttered up its operations by increasing subsidies for drivers and food items in order to gain market share.
Once the IPO was over, the true impact of these decisions hurt Uber's expenses and resultingly ended up hurting investors. However, the lawsuit is yet to find itself a lead plaintiff. In its third-quarter 2019 earnings report, Uber reported a $1.2 billion loss, down from the $5.1 billion loss the company reported in 2019's second-quarter but up from the $986 million loss it had reported in the year-ago quarter. The company's CEO Dara Khosrowshahi hopes to reach profitability by 2021.
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