Uber Technologies UBER co-founder and former CEO Travis Kalanick’s sell-off spree has reached a level where he is on the verge of divesting his entire stake in Uber over the next few days.
Following Uber’s lock-up expiration on Nov 6, Kalanick sold shares worth more than $2.5 billion. In his latest round of sale, he sold shares worth $383 million last week. He has only 8.2 million Uber shares worth $250.3 million remaining. Until November’s sell-off, Kalanick had 98 million shares of Uber.
Uber’s ex CEO is currently focusing on his new venture CloudKitchens, a start-up providing smart kitchens for delivery-only restaurants. Speculations are rife that Kalanick’s mass-scale sell-offs aim at generating funds for his new business initiative.
The Uber stock has been struggling to cope with cost pressure, incurring successive losses in each of the three quarters of 2019, ever since it went public on May 10, 2019. The company made its trading debut at a price of $45 and its shares have declined more than 27% ever since. The massive sell-offs by the company’s co-founder and former CEO is a further setback for the stock and raises doubts about its future.
Zacks Rank & Key Picks
Uber carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are Marchex, Inc. MCHX, Akamai Technologies, Inc. AKAM and HealthStream, Inc. HSTM. While Marchex sports a Zacks Rank #1 (Strong Buy), Akamai Technologies and HealthStream carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Marchex, Akamai Technologies and HealthStream have rallied more than 50%, 47% and 20%, respectively, in a year’s time.
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