The bad news continues to come for once unstoppable tech company Uber. Just days after going public, the ride-share company’s stock has reached a new low in the stock exchange calling its future of making profits into question.
Just days after Lyft and Uber employees went on strike last Wednesday due to unfair wages and compensation and going public Uber Technologies’ shares closed down 10.8% on Monday.
More than doubling their losses since the ride-hailing giant’s poorly received Wall Street debut. “The stock “did not trade as well as we had hoped post-IPO,” Chief Executive Dara Khosrowshahi wrote in a memo that was later seen by Reuters.
Hitting a new low of $36.58, the company is now valued at about $14 billion less than the IPO price of $45. “Today is another tough day in the market,” Khosrowshahi said. To reassure investors and employees the CEO reminded them that companies like Facebook and Amazon also struggled after initially going public.
Even Lyft is experienced its own 5.8% plunge after going public with $72 a share in late March. The fall in shares come against the backdrop of a global stock market selloff sparked by renewed trade tensions between the United States and China.