SoFi Blog

For some, Uber’s initial public offering (IPO) has been a major disappointment so far. The ride-sharing company, which has disrupted the transportation industry, went public on May 10, 2019 and its stock price immediately began to fall. Here’s a look at what happened and some factors that may have caused Uber’s IPO tumble.

What Happened with Uber’s IPO?

On Thursday afternoon, Uber set its IPO price at $45 a share . At that price, the company had a projected value of $82.5 billion .

However, when the markets opened on Friday morning, the stock immediately began trading at 6.7% below the IPO price at $42 a share. By the end of trading, the stock was down 7.6% below , closing at $41.57. The company raised $8.1 billion in its IPO, which gave it an initial valuation of $76.5 billion .

The stock fared no better on its second day of trading. Prices slid another 11% , or $4.47, to end at $37.10, or 18% lower than the IPO price. And though the stock price had recovered a bit by the end of its third day of trading, closing at $39.96, that was still well below its opening share price on Friday.

In a year of hotly anticipated IPOs, perhaps one of the most anticipated is Uber. The ridesharing company’s IPO this week is set to be one of the largest in history. Here’s a dive into the company and what to know about its IPO.

The past month has been extremely active when it comes to initial public offerings (IPOs) from major companies in tech. For some, like Lyft , whose company stock suffered after their IPO, April can really be the cruelest month. But others, like Zoom , experienced sky-high gains.