With 180 million Uber shares about to hit the stock market, it’s no surprise the stock’s first trade may take a while.
Uber priced its IPO at $45 a share, valuing the company at $75.5 billion. The pricing is well below what some expected could be a $120 billion valuation. But with Lyft dropping the ball with its IPO (stock down 23% since its late March debut) by overhyping it on the roadshow, Uber reportedly chose a more conservative path.
It was probably right to take that more measured path.
The owner of Uber Eats and its eponymous ride-hailing service saw its sales spike 43% last year to $11.3 billion. But, the company lost $3 billion on top of a $4 billion loss in 2017. Overall growth continued to slow in most areas of Uber’s business, too.
Uber’s cash flow from operations the past three years was an outflow of $5.8 billion.
Brian Sozzi is an editor-at-large and co-host of ‘The First Trade’ at Yahoo Finance. Follow Brian Sozzi him on Twitter @BrianSozzi
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