Keep calm and carry on, the future remains bright for Uber (UBER).
That is the message that came from Uber CEO Dara Khosrowshahi in a letter to employees on Monday, which was obtained by Yahoo Finance.
“Obviously our stock did not trade as well as we had hoped post-IPO. Today is another tough day in the market, and I expect the same as it related to our stock. But it is essential for us to keep our eye on the long-term value of Uber for our customers, partners, drivers and investors,” Khosrowshahi wrote.
Uber employees are right if they are feeling a little nervous.
With President Donald Trump dropping trade war bombs on the heads of Chinese officials via Twitter and rival Lyft continuing to be a disaster, Uber’s IPO debut stunk.
The ride-hailing business priced its stock at $45 a share on Thursday, giving the company a valuation of $82.4 billion. Uber began trading on Friday morning at about $42 a share. By the time the market closed, Uber’s stock had nosedived 7.6% from its IPO price to $41.57. Uber became the first company with a $4 billion-plus offering to open below its IPO price, according to Dealogic.
Uber shares fell more than 10% by afternoon trading on Monday.
Below is the full letter obtained by Yahoo Finance.
I’m looking forward to being in front of you at the All Hands tomorrow, but I wanted to send you a quick note in the meantime.
First off, I want to thank you all for your passion for and commitment to Uber. We simply would not be here without you.
Like all periods of transition, there are ups and downs. Obviously our stock did not trade as well as we had hoped post-IPO. Today is another tough day in the market, and I expect the same as it relates to our stock.
But it is essential for us to keep our eye on the long-term value of Uber for our customers, partners, drivers and investors.
Every stock is valued based on the projected future cash flows/profits that the company is expected to generate over its lifetime. There are many versions of our future that are highly profitable and valuable, and there are of course some that are less so. During times of negative market sentiment, the pessimistic voices get louder, and the optimistic voices pull back.
We will make certain that we communicate our incredible value as a company that is changing the way the world moves, but also the value that we are building for our owners. But there is one simple way for us to succeed – focus on the work at hand and execute against our plans effectively.
Remember that the Facebook and Amazon post-IPO trading was incredibly difficult for those companies. And look at how they have delivered since.
Our road will be the same. 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. As the market sees evidence, sentiment will improve, and as sentiment improves, the stock will follow. We will not be able to control timing, but we will be able to control the outcome.
We will be judged long-term on our performance, and I welcome that. It’s all in our hands.
I look forward to being there at the All Hands to answer Qs and tell you more.