Uber fell more than 7% Monday, the first trading day after it disappointed investors in the most highly anticipated initial public offering of the year. The stock touched below $39 per share in premarket trading.
Uber began trading at $42 per share but dropped 7.6% on its first day on the New York Stock Exchange on Friday. It closed below $42 per share with a market cap of $69.7 billion. To be sure, the last two days have been volatile for the U.S. stock market amid a breakdown in trade talks with China. Major U.S. indexes dropped more than 2% Monday morning.
Uber priced its shares toward the low end of its target range of $44 to $50 per share on the eve of its debut. This share price gave the company a market valuation of $75.46 billion, which well below the $120 billion it was reportedly seeking when news first broke it was preparing to go public.
