Uber shares have made their debut on the New York Stock Exchange. Its shares were priced at $45 per share – at the lower end of the range. This price values the company at around $82.4 billion – lower than previous valuations.
Uber’s initial public offering follows an IPO from its rival Lyft in April.
Alejandro Ortiz is a Research Analyst for SharesPost Research LLC. He offered his assessment of Uber’s growth potential.
“While Uber benefits from broader scope and larger size overall compared to Lyft, the company will have to convince investors it can mitigate the risks inherent in its business model.”
Ortiz adds: “Because Uber is a larger company, the magnitude of its losses is considerably higher than its smaller counterpart. Uber’s operating loss was $3 billion in 2018 vs. a $977 million loss for Lyft. With an uncertain road to profitability, Uber will have to clearly and convincingly demonstrate its long-term growth potential.”
Ortiz says that Uber’s market performance will have an impact on the other so called ‘unicorns’ who are looking to float in the U.S. such as WeWork.