After a month, Uber finally rose above its IPO opening price of $45 per share Today with a high at $45.75. However, it dropped back to $45.07 per share before closing.
“Earlier this month we took the important step of becoming a public company, and we are now focused on executing our strategy to become a one-stop shop for local transportation and commerce,” Uber chief Dara Khosrowshahi said in a statement regarding the company’s earnings. “In the first quarter, engagement across our platform was higher than ever, with an average of 17 million trips per day and an annualized gross bookings run-rate of $59 billion.”
Uber stock had a rough May when Uber performed poorly in the stock market and traded below its IPO opening price with only $40 per share. In the following weeks, Uber price hovered between $40 per share to $43 per share.
Uber’s introductory IPO at $45 per share raised $8.1 billion for the company but quickly saw the number depreciate in the following weeks. The ride-hailing company was priced at only $42 per share the following morning of its IPO announcement.
Initially, the ride-hailing company was touted at $72 billion in the private market — which led experts to believe that Uber would reach an initial market cap of over $100 billion. Instead, the company currently sits at a $67 billion evaluation.
Meanwhile, the stock market was strong overall for the second straight day thanks to the United States Federal Reserve hinting at cutting interest rates to adjust with current stock market fluctuations brought upon by US-China trade wars.
Furthermore, the stock market showed well for tech companies amidst reports about the Justice Department and the Federal Trade Commission launching investigations into tech giants like Facebook, Alphabet Inc., and Amazon.
The Entrepreneur Index™ rose by 0.82 percent, keeping pace with the Dow (0.82 percent) and the S&P 500 (0.78 percent) on the day. Alphabet (-1.03 percent) and Gap Inc. (-2.59 percent) were among just 14 stocks on the index to fall.CRM Quotes by TradingView.
Standouts on the day included Under Armour (4.29 percent), Brown-Forman Corp(4.48 percent) and salesforce.com (5.06 percent).