Uber gets hit again; shares below $40

Uber gets hit again; shares below $40

Uber shares were down 8% in morning trading and dipped below $38 after the opening bell.

Monday was the first full day of trading for the ride-hailing company after its rocky debut on the stock market Friday. Its shares had been priced at $45 each.

It’s rare to see shares in a tech company hit so hard upon going public. Over the past five years, just 10% of similar companies finished their first day of trading below their IPO price, said Matt Kennedy, senior IPO market strategist at Renaissance Capital, a manager of IPO focused funds.

Uber’s revenue last year surged 42% to $11.3 billion, but the company admits it could be years before it turns a profit.

Uber closed Friday at $41.57 and shares in Lyft fell about 7%.

Source: abcnews.go.com

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