# Since reporting earnings last week, Uber’s stock has retreated more than 21 per cent



## Hugh G (Sep 22, 2016)

Matthew Rocco in New York
10 hours ago
https://www.ft.com/content/e0b1012a-beac-11e9-89e2-41e555e96722
Uber shares have slipped to their weakest level since the ride-hailing company went public in May, amid a broad sell-off on Wall Street and lingering profit concerns










Uber tumbled 7.6 per cent to $33.66 on Wednesday, setting a pace for the stock's second-worst day and its lowest closing value on record

The stock fell as low as $33.36 during morning trade in New York, a fresh intraday low

Rival Lyft also got sideswiped by a market rout in which the S&P 500 suffered losses of around 2.8 per cent about halfway through the session

Shares in Lyft fell 7 per cent to $54 but were on track to stave off a record low, as they remained above a low mark of $48.15 on May 13

Both stocks have largely struggled to gain traction following their market debuts, with investors sceptical over the industry's path to profitability

Uber and Lyft were trading on Wednesday about 25 per cent below their listing prices of $45 and $72 a share, respectively

Last week, Uber said it booked its largest-ever net loss of $5.24bn in the second quarter, dragged down by costs related to the IPO including stock-based compensation

The company also came up short against Wall Street's revenue forecast

"We like Uber's efforts to focus on higher margin ride-sharing offerings and think its rewards program will drive stickiness as well as greater consumer frequency to its platform

Yet, competitive pressures/lower take pay within Uber Eats remains a concern," CFRA Research analyst Angelo Zino wrote in a note to clients

He added: "Contribution margin of 8 per cent was well ahead of our view and we think results help pave the way towards profitability over time as Uber scales its highly recurring-based business." Since reporting earnings last week, Uber's stock has retreated more than 21 per cent

Shares in other US companies that recently became public also got swept up in Wednesday's sell-off

Social media network Pinterest was down as much as 6.6 per cent, while video conferencing group Zoom fell 5.8 per cent at its lows.


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## cangold (Mar 18, 2018)

I’ll buy @ $3.17 a share .. That’s the amount we get paid?


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