ReutersNEW YORK (Reuters) — Uber Technologies Inc.’s shares fell 12 percent Monday, more than doubling their losses since the ride-hailing giant’s poorly received market debut, and its chief executive officer said he expected the stock to remain under pressure in the coming months.
The fall in shares comes against the backdrop of a global stock market sell-off sparked by renewed trade tensions between the United States and China.
The stock hit a low of $36.58, valuing the company at about $14 billion less than the IPO price of $45. Shares of smaller rival Lyft Inc., which went public at $72 a share on March 29, were down 7.3 percent at $47.38.
Uber’s stock “did not trade as well as we had hoped post-IPO,” Chief Executive Dara Khosrowshahi wrote in a memo to employees that was seen by Reuters.
“Sentiment does not change overnight, and I expect some tough public market times over the coming months. But we have all the capital we need to demonstrate a path to improved margins and profits,” Khosrowshahi added.
Bloomberg first reported the news based on the memo.
Uber lowered its valuation expectations twice in the past two months to address investor concerns over its mounting losses, and finally priced its IPO at the low end of the targeted range in a bid to avoid Lyft’s stock market struggles.
Uber’s market capitalization has fallen to about $61 billion since its IPO on Thursday, still larger than Wall Street heavyweights including General Motors and FedEx.