Uber's stock sinks below $45 IPO price in first trade - Yahoo Finance

Uber (UBER) officially began trading Friday on the New York Stock Exchange, but stumbled out of the gate as its stock dropped below its $45 initial public offering price.

In Uber’s first test of whether it can transition from Silicon Valley unicorn to a publicly traded company while winning over a skeptical, volatile market, the stock — which priced at $45 on Thursday — gradually drifted lower from the $46-$48 indicated range prior the open.

In its first trade, Uber hit the market at $42 per share on the New York Stock Exchange (NYSE), effectively crashing out of the preferred range that it listed for its IPO of between $44 to $50.

In an interview with Yahoo Finance, NYSE COO John Tuttle said the first trade would be determined by a list of factors.

“I think a lot of things go into pricing an IPO. Market conditions and how two comparable companies perform in the market are two variables that are considered,” Tuttle said. That comparable company he’s referring to is ride-hailing competitor Lyft (LYFT).

Uber’s offering is the most eagerly anticipated of a wave of technology IPOs expected to hit markets this year. Yet the company has become the victim of circumstances beyond its control, with markets being roiled by fears of a U.S.-China trade war.

Uber's earliest investors are making a fortune.

Meanwhile, Lyft’s disappointing stock debut has clouded Uber’s prospects.

Lyft’s maiden voyage as a public company in March immediately hit rough shoals: The stock opened near $90, but quickly sank to a low of $52.78. On Friday, its stock hit a record low, underscoring investor skepticism about how either company will make money in the near term.

Lyft’s woes — combined with the fact that virtually none of the tech unicorns are profitable at this juncture — is adding to Uber’s challenge. The company burned through $1 billion in the first quarter of 2019, Uber recently revealed in a regulatory filing, and has yet to chart a path toward making a profit.

“Reading the S-1 filings of these companies has been an eye-opening experience,” analysts at Bernstein noted last month.

Ride sharing accounts for just a sliver of U.S. vehicle miles traveled, which “is simultaneously the bull case and bear case here for these companies. Bulls on mobility services can claim almost limitless potential for penetration upside,” Bernstein said.

However, “Uber and Lyft each took almost a decade to get to their present scale, are seeing growth slow, and incinerate cash at impressive rates while showing modest operating leverage,” the firm added — all of which matters now that both have to report their business conditions on a regular basis.

Read more:

• Slack's S1 highlights: A $28B market ripe for the taking

• WeWork amends confidential IPO filing, takes a step closer to going public

• Lyft gets a sentiment boost as Wall Street gets bullish on its future

• Pinterest prices IPO at $19 per share, above original range

Let's block ads! (Why?)

https://finance.yahoo.com/news/uber-ipo-to-begin-trading-on-nyse-135445721.html

2019-05-10 16:13:00Z
52780290677631

Uber opens below IPO price in disappointing Wall Street debut - CNN

But even that wasn't enough to guarantee a strong Wall Street debut.

In a stunning turn of events, Uber began trading at $42 a share on Friday, below its IPO price of $45. The debut comes after Uber raised $8.1 billion in one of the largest public offerings ever, valuing the company at $82 billion, but nonetheless at the low end of what Uber originally set out to raise.

Uber's public debut comes at the end of a turbulent week filled with headlines about striking workers, steep losses in the ride-hailing industry and broader market jitters over an escalating trade war between the United States and China.

The less-than-stellar offering could prove to be just the first rude awakening Uber faces as it transitions to the public market. Over the last decade, Uber emerged as the poster child for a generation of technology startups that raised — and lost — unprecedented amounts of money while avoiding going public as long as possible. But that may not fly on Wall Street.

Lyft (LYFT), Uber's chief rival in the United States, has languished on the stock market since going public in late March. Shares in Lyft fell below their IPO price on their second day of trading and have continued to tumble since. The stock is now down about 25% from the IPO price.

Like Lyft, Uber has a history of bleeding money as it subsidizes the cost of rides and invests in an increasing array of transportation options. Uber lost $1.8 billion in 2018, more than any US startup has ever lost in the year prior to going public. The previous company to hold that dubious honor, however briefly: Lyft.

"It's amazing what [Uber has] built, but they are still not done doing it. They've been subsidizing the business," said Kathleen Smith, principal at Renaissance Capital, which manages IPO-focused exchange-traded funds. "The boat doesn't float on its own bottom."

As Smith points out, tech companies that have come to market in recent years with massive losses — including Lyft and Snap — are currently "not trading above their IPO price."

Uber, for its part, has pitched itself as an "Amazon for transportation" in that it offers a broad range of services, including meal deliveries and freight shipping. But the Amazon comparison can also be read as a clear signal to investors. Amazon lost money for years while investing to build a massive business. Now, it makes billions in profit each quarter.

Uber's long and bumpy road

Uber launched in 2009 with the goal of offering private cars on-demand, simply by opening an app on your smartphone. In the decade since, it bulldozed ahead of ride-hailing rivals through a mix of aggressive fundraising, dirty tricks and a take-no-prisoners attitude toward expansion in the United States and abroad.

Along the way, Uber destabilized the taxi industry, became the most valuable US startup and emerged as the darling of Silicon Valley, spawning an entire category of companies billing themselves as the "Uber for X."

But that changed in 2017 when former engineer Susan Fowler rocked the company by making public allegations of sexism and harassment in a lengthy blog post. An internal investigation revealed a reckless office culture where "toe-stepping" was a prized value and executives had unchecked power. Travis Kalanick, Uber's cofounder and then CEO, admitted he needed to "grow up" after being caught on camera arguing with an Uber driver.

Kalanick was ultimately ousted in June 2017. At that point, Uber was operating without a CEO, CFO, COO or CMO.

Uber replaced the brash Kalanick with Dara Khosrowshahi, a seasoned executive who ran Expedia (EXPE) previously. Khosrowshahi quickly stressed that Uber had to change. "What got us here is not what's going to get us to the next level," he said.

Since then, he has revamped the company's cultural norms, which now include maxims such as "We Do The Right Thing," in stark contrast to Kalanick's edict to "Always Be Hustlin'." He's made key executive hires, including a CFO after three years without one. And he's put to rest some outstanding crises, including a major lawsuit with Google's self-driving car unit Waymo over the alleged stealing of trade secrets.

Under Khosrowshahi, Uber also reconsidered its efforts to operate all across the world. "One of the potential dangers of our global strategy is that we take on too many battles across too many fronts and with too many competitors," he said last year.

A bad week to go public

After that mad dash to overhaul its business and go public, Uber ran into a different problem: the Week from Hell.

On Sunday, President Trump surprised investors by threatening to impose higher tariffs on China in a tweet. The market swung wildly amid concerns of an escalating trade war between the United States and China.

Then on Tuesday, Lyft reported its first earnings report since going public, which revealed more than $1 billion in losses during the first three months of this year. Lyft stock continued its decline the day after.

At one time, Uber rooted for Lyft to fail. But as the closest proxy to Uber on the public market, Lyft's stock decline only made Uber's IPO pitch that much harder.

Daniel Ives, an analyst with Wedbush, said in an investor note this week that Lyft's stock performance, combined with broader market jitters, likely "caused Uber to look at a more conservative price range based on its demand for its IPO."

And if all that wasn't enough, Uber and Lyft drivers staged strikes in numerous cities on Wednesday ahead of the IPO. The drivers are seeking livable incomes and job security at a time when Uber will likely only face greater pressure from investors to find ways to move toward profitability.

Let's block ads! (Why?)

https://www.cnn.com/2019/05/10/tech/uber-wall-street-debut/index.html

2019-05-10 16:00:00Z
52780290677631

Uber makes its Wall Street debut - CNN

But even that wasn't enough to guarantee a strong Wall Street debut.

In a stunning turn of events, Uber began trading at $42 a share on Friday, below its IPO price of $45. The debut comes after Uber raised $8.1 billion in one of the largest public offerings ever, valuing the company at $82 billion, but nonetheless at the low end of what Uber originally set out to raise.

Uber's public debut comes at the end of a turbulent week filled with headlines about striking workers, steep losses in the ride-hailing industry and broader market jitters over an escalating trade war between the United States and China.

The less-than-stellar offering could prove to be just the first rude awakening Uber faces as it transitions to the public market. Over the last decade, Uber emerged as the poster child for a generation of technology startups that raised — and lost — unprecedented amounts of money while avoiding going public as long as possible. But that may not fly on Wall Street.

Lyft (LYFT), Uber's chief rival in the United States, has languished on the stock market since going public in late March. Shares in Lyft fell below their IPO price on their second day of trading and have continued to tumble since. The stock is now down about 25% from the IPO price.

Like Lyft, Uber has a history of bleeding money as it subsidizes the cost of rides and invests in an increasing array of transportation options. Uber lost $1.8 billion in 2018, more than any US startup has ever lost in the year prior to going public. The previous company to hold that dubious honor, however briefly: Lyft.

"It's amazing what [Uber has] built, but they are still not done doing it. They've been subsidizing the business," said Kathleen Smith, principal at Renaissance Capital, which manages IPO-focused exchange-traded funds. "The boat doesn't float on its own bottom."

As Smith points out, tech companies that have come to market in recent years with massive losses — including Lyft and Snap — are currently "not trading above their IPO price."

Uber, for its part, has pitched itself as an "Amazon for transportation" in that it offers a broad range of services, including meal deliveries and freight shipping. But the Amazon comparison can also be read as a clear signal to investors. Amazon lost money for years while investing to build a massive business. Now, it makes billions in profit each quarter.

Uber's long and bumpy road

Uber launched in 2009 with the goal of offering private cars on-demand, simply by opening an app on your smartphone. In the decade since, it bulldozed ahead of ride-hailing rivals through a mix of aggressive fundraising, dirty tricks and a take-no-prisoners attitude toward expansion in the United States and abroad.

Along the way, Uber destabilized the taxi industry, became the most valuable US startup and emerged as the darling of Silicon Valley, spawning an entire category of companies billing themselves as the "Uber for X."

But that changed in 2017 when former engineer Susan Fowler rocked the company by making public allegations of sexism and harassment in a lengthy blog post. An internal investigation revealed a reckless office culture where "toe-stepping" was a prized value and executives had unchecked power. Travis Kalanick, Uber's cofounder and then CEO, admitted he needed to "grow up" after being caught on camera arguing with an Uber driver.

Kalanick was ultimately ousted in June 2017. At that point, Uber was operating without a CEO, CFO, COO or CMO.

Uber replaced the brash Kalanick with Dara Khosrowshahi, a seasoned executive who ran Expedia (EXPE) previously. Khosrowshahi quickly stressed that Uber had to change. "What got us here is not what's going to get us to the next level," he said.

Since then, he has revamped the company's cultural norms, which now include maxims such as "We Do The Right Thing," in stark contrast to Kalanick's edict to "Always Be Hustlin'." He's made key executive hires, including a CFO after three years without one. And he's put to rest some outstanding crises, including a major lawsuit with Google's self-driving car unit Waymo over the alleged stealing of trade secrets.

Under Khosrowshahi, Uber also reconsidered its efforts to operate all across the world. "One of the potential dangers of our global strategy is that we take on too many battles across too many fronts and with too many competitors," he said last year.

A bad week to go public

After that mad dash to overhaul its business and go public, Uber ran into a different problem: the Week from Hell.

On Sunday, President Trump surprised investors by threatening to impose higher tariffs on China in a tweet. The market swung wildly amid concerns of an escalating trade war between the United States and China.

Then on Tuesday, Lyft reported its first earnings report since going public, which revealed more than $1 billion in losses during the first three months of this year. Lyft stock continued its decline the day after.

At one time, Uber rooted for Lyft to fail. But as the closest proxy to Uber on the public market, Lyft's stock decline only made Uber's IPO pitch that much harder.

Daniel Ives, an analyst with Wedbush, said in an investor note this week that Lyft's stock performance, combined with broader market jitters, likely "caused Uber to look at a more conservative price range based on its demand for its IPO."

And if all that wasn't enough, Uber and Lyft drivers staged strikes in numerous cities on Wednesday ahead of the IPO. The drivers are seeking livable incomes and job security at a time when Uber will likely only face greater pressure from investors to find ways to move toward profitability.

Let's block ads! (Why?)

https://www.cnn.com/2019/05/10/tech/uber-wall-street-debut/index.html

2019-05-10 15:04:00Z
52780290677631

Stocks Edge Lower as U.S.-China Trade War Worsens - The New York Times

Stocks edged lower again on Wall Street, sending the S&P 500 down for its fifth consecutive day, as the Trump administration imposed fresh tariffs, escalating the trade war with China.

The benchmark American stock market index fell, led by declines in tech, energy and industrial shares.

Early Friday, the administration raised tariffs to 25 percent from 10 percent on Chinese imports that are worth about $200 billion a year. President Trump said the increase came in response to Chinese officials attempting to “renegotiate” a pact aimed at calling a truce in the trade war. China said it would respond with unspecified countermeasures.

Mr. Trump also said on Twitter that “there is absolutely no need to rush” on a trade deal, dampening hopes that an agreement would be reached quickly.

Still, the Trump administration effectively delayed the full brunt of the tariff increase, specifying that it would collect the duties only on goods that leave China starting on Friday. That means they will not hit Chinese products already on ships destined for the United States, though goods that are flown in will be more immediately affected.

“Our base case remains that the U.S. and China will eventually reach some kind of accord,” Mark Haefele, global chief investment officer for the Swiss bank UBS, said in a research note. “Both the U.S. and China have strong incentives to reach a deal, and we do not expect a complete breakdown in negotiations.”

Concerns about the ongoing trade battle between the world’s two largest economies overshadowed excitement over trading debut of Uber. The ride-sharing company priced its public offering Thursday, which valued it at more than $82 billion.

Shares in China, which sometimes gets a lift from state-run companies looking to buoy the market, rose sharply but gains elsewhere in the world were more muted. Futures that allow investors to bet on the performance of stocks in the United States indicated that stocks on Wall Street would open a little lower.

European markets were higher. The Dax in Germany was up 0.9 percent and the CAC 40 in France was 0.6 percent higher. The FTSE 100 in London rose 0.3 percent.

In China, the Shanghai Composite Index rose 3.1 percent, while the Shenzhen Composite Index rose 3.8 percent.

The Hang Seng Index in Hong Kong rose 0.8 percent. In Japan, the Nikkei 225 index fell 0.3 percent after disappointing wage data there. South Korea’s Kospi index rose 0.3 percent.

Let's block ads! (Why?)

https://www.nytimes.com/2019/05/10/business/global-markets.html

2019-05-10 13:00:37Z
52780289338615

Elon Musk is wrong on robotaxi timing, Uber CEO Dara Khosrowshahi says - CNBC

Uber CEO Dara Khosrowshahi told CNBC he agrees with Tesla CEO Elon Musk that the future of mobility is electric, but he disagrees with Musk that truly autonomous "robotaxis" will next year.

In an interview that aired on Uber's IPO day on Friday, "Squawk Box" co-host Andrew Ross Sorkin asked him what the future of mobility looks like.

"First of all, it's got to be electric," the CEO said. "We think that's a no-brainer. It's good for the environment. It's where the world is going. And we're playing our part, for example, in London to move it electric." He added that Uber, of course, thinks the future of mobility also has to be "shared."

The ride-hailing giant will make its debut on the New York Stock Exchange on Friday, pricing its IPO on Thursday night at $45 per share.

Tesla CEO Elon Musk recently told investors he is ready to take Tesla into a new, driverless era. The company should have a million vehicles capable of functioning as driverless robotaxis on the road by the end of 2020, he said. He also told investors that self-driving technology and services will help his electric car company grow to a $500 billion market cap.

When the Uber CEO first heard Musk's predictions about this, Khosrowshahi said, "I thought: If he can do it, more power to him. Our approach is a more conservative approach as far as sensor technology and mapping technology. The software's going to get there. So I don't think that his vision is by any means wrong. I just think we disagree on timing."

Musk has also promised investors and fans that Tesla's self-driving cars will be able to work 100 hours a week, generating tens of thousands of dollars in income for their owners. He has also said that Tesla should be able to win regulators over to approve Tesla robotaxis for commercial use in the near future, at least in some locales.

Tesla and Uber have seen their semi-autonomous vehicles involved in fatal crashes in recent years.

Khosrowshahi struck a more sober tone about a driverless future.

"I think it will be quite a few years beyond," he said.

While media coverage and industry conversations have focused on the dramatic notion that robots will steal jobs from people, the Uber CEO said he believes automation will always work better to augment humans' work. The better things are robots and humans together. Hybrid is always better, and hybrid states can continue for a much longer period than you think."

In addition to its sizable ride-hailing business, Uber offers bike and scooter rentals, food delivery and operates a freight marketplace that links senders to shippers. Uber is developing self-driving vehicle technology through its Advanced Technologies Group.

Post-IPO Uber has a market capitalization over $80 billion. Tesla's market cap currently stands around $43 billion.

Let's block ads! (Why?)

https://www.cnbc.com/2019/05/10/uber-ceo-dara-khosrowshahi-says-elon-musk-is-wrong-on-robotaxi-timing.html

2019-05-10 12:23:18Z
52780290677631

Stocks making the biggest moves premarket: Uber, Marriott, Viacom, Equifax, Zillow & more - CNBC

Check out the companies making headlines before the bell:

Marriott — The hotel operator earned an adjusted $1.41 per share for the first quarter, 7 cents a share above estimates. Revenue missed forecasts, however, but Marriott said it was able to increase North American profit margins despite higher labor costs and modest revenue growth.

Viacom — Viacom reported adjusted quarterly profit of 95 cents per share, beating the consensus estimate of 80 cents a share. Revenue was below forecasts, however. Viacom said its results were helped by significant gains in program distribution. Separately, Viacom agreed to slash its fees for distribution in its recent deal with AT&T's DirecTV unit, according to people familiar with those negotiations who spoke to The Wall Street Journal.

Equifax — The credit reporting agency matched estimates with adjusted quarterly profit of $1.20 per share, but revenue missed forecasts and the company's second-quarter earnings outlook falls below consensus. Equifax said costs related to the data breach announced in 2017 have now totaled $1.35 billion.

Uber — Uber priced its initial public offering at $45 per share, toward the low end of the expected range. Nonetheless, the ride-sharing service's IPO will raise $8 billion, making it the largest U.S. IPO since Facebook went public in 2012.

Booking Holdings — Booking Holdings earned an adjusted $11.17 per share for its latest quarter, 10 cents a share below consensus forecasts. Revenue also missed estimates, but the parent of Priceline and other travel services said it should see revenue growth this quarter.

Dropbox — Dropbox beat estimates by 4 cents a share, with adjusted quarterly profit of 10 cents per share. The file storage company's revenue came in ahead of expectations, as well. Dropbox signed up more paying users during the quarter, and also posted an increase in revenue per user.

Wynn Resorts — Wynn reported adjusted quarterly earnings of $1.61 per share, a penny a share ahead of consensus. The casino operator's revenue was very slightly below estimates amid a drop in Macau casino action.

Zillow — Zillow lost 33 cents per share for the first quarter, smaller than the 35 cents a share loss that Wall Street analysts had been expecting. The real estate website operator's revenue beat forecasts, increasing 51% compared to a year ago. It also saw an increase in unique monthly users.

Symantec — Symantec shares are under pressure after the cybersecurity software company's chief executive officer unexpectedly resigned, and it issued a profit warning for the current quarter. Director Richard Hill, who will fill the CEO slot on an interim basis, said former CEO Greg Clark had issues with an ill parent.

Yelp — Yelp earned 2 cents per share for the first quarter, compared to consensus estimates of a penny a share. The consumer review website operator also had higher-than-expected revenue. Yelp gave weaker-than-expected revenue guidance for the current quarter, however, and said unique visitors to its desktop and mobile sites had declined during the first quarter.

Anheuser-Busch InBev — The beer brewer filed to spin off its Asian business in a Hong Kong-based initial public offering Sources who spoke to Reuters say the deal could be worth at least $5 billion.

TiVo — TiVo will split itself into two separate companies, one for its product division, the other for intellectual property licensing. The maker of set top boxes and digital video recorders has been exploring options for its businesses for more than a year.

News Corp. — News Corp. reported adjusted quarterly profit of 4 cents per share, compared to forecasts of a breakeven quarter. The media company's revenue came in below estimates. The bottom line was helped by an increase in digital subscriptions for the Wall Street Journal and New York Post publisher, as well as expansion at its digital real estate businesses.

Boston Beer — Boston Beer will buy rival craft brewer Dogfish Head Brewery in a $300 million cash and stock deal. Both Dogfish and Boston Beer — the brewer of the Sam Adams brand — have been battling declining sales in recent years.

GoPro — GoPro reported an adjusted quarterly loss of 7 cents per share, 2 cents a share smaller than expected. The high definition camera maker's revenue beat estimates. GoPro also raised its full-year revenue forecast amid high demand for its new line of action cameras.

Let's block ads! (Why?)

https://www.cnbc.com/2019/05/10/stocks-making-the-biggest-moves-premarket-uber-marriott-viacom-equifax-zillow-more.html

2019-05-10 11:54:39Z
52780290677631

Party City closing 45 stores in light of global helium shortage - WJW FOX 8 News Cleveland

[unable to retrieve full-text content]

Party City closing 45 stores in light of global helium shortage  WJW FOX 8 News Cleveland

Party City announced Thursday it will close 45 stores across the country this year in light of a global helium shortage. The company currently owns 870 locations.

View full coverage on Google News
https://fox8.com/2019/05/10/party-city-closing-45-stores-in-light-of-global-helium-shortage/

2019-05-10 11:23:00Z
CAIiEDxKLl3FLwZAGF8F7ltOE8wqGQgEKhAIACoHCAow0Yj_CjDpgvgCMOO15AU