Aim low, strike lower
Popular with mom-and-pop investorsDespite some clouds, Uber proved the value of being a household name yesterday as it attracted more small investors than rival Lyft. TD Ameritrade’s retail investors said they had performed more trades in the first ten minutes of Uber’s float, than in two and half hours of Lyft’s debut in March.
Uber joins a small club of first-time flopsThe ride-hailing app has become one of a small proportion of IPOs which have ended their first day of trading below their target price. Only around a fifth of companies finished day one in the red over the past two years, data from Dealogic shows.
Even rival Lyft, whose shares have dropped heavily since listing in late March, was able to call its first day on the New York exchange a success, with shares up nine per cent. Yesterday Lyft ended 28 per cent below its IPO price.