Uber's Rocky IPO Is a 'Near-Term Speed Bump,' Wedbush's Ives Says

Uber's spending on lobbying

"Uber's opening trade shows investors aren't willing to pay a premium valuation yet for the ride-sharing company's ability to sustain a high top-line growth", said Mandeep Singh, a senior technology analyst for Bloomberg Intelligence. Its rival Lyft just went public, raising $2.34 billion, and many are questioning whether either company can become profitable.

Worries about the Lyft IPO and its quickly descending stock price pushed Uber to price its initial offering at the low end of its announced scale.

Khosrowshahi pitched the company during its IPO roadshow as the Amazon of transportation.

The Dow Jones Industrial Average fell almost 300 points in early trading, just hours after new US tariffs on Chinese imports took effect.

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Facing a turbulent time at its drivers' end, Uber priced its IPO at $45 per share with an aim to raise $8.1 billion. "We believe Uber is off to a choppy trade on the heels of the Lyft train wreck out of the gates and general investor nervousness on the United States and China [trade war], [and investors' worries about risk]", said Daniel Ives, managing director of equity research at Wedbush Securities. Such a first-day downward price movement indicates that the company, which has yet to turn a profit in its ten years of existence, has been overvaluing itself to investors, and is now going to have to pay for it. The stock bounced around and by early afternoon was trading at about $44.50 per share.

Gig Workers Rising is demanding that Uber and Lyft give their drivers a living wage, set more transparent policies on wages, tips, and fare breakdowns, provide retirement, healthcare, and leave benefits, and more representation.

The self-inflicted wounds included complaints about rampant internal sexual harassment, accusations that it stole self-driving vehicle technology, and a cover-up of a computer break-in that stole personal information about its passengers. She and CEO Dara Khosrowshahi were joined by Uber drivers from around the world and other Uber executives at the NYSE. Kalanick remains on Uber's board and while he kept a relatively low profile during the stock debut, he can still savor his newfound wealth. Perhaps the most obvious reason is that today wasn't great for the stock market as a whole, and such downward pressure is a lot for any company to overcome.

The much-anticipated Uber initial public offering managed to break a record, but not one that investors would have hoped for.

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