Monday 13 May 2019 2:39 pm

Uber IPO: Shares slide again on second day of New York trading

Shares in Uber dropped as much as 10 per cent this afternoon on its second day of trading following a disappointing $82.4bn (£63.2bn) stock market debut on Friday.

The ride-hailing giant’s stock fell to $37.22, dropping more than 17 per cent below its initial public offering (IPO) price of $45 per share.

Read more: Uber braced for second day of trading after rough ride in IPO

Shares trimmed their losses to stand 7.9 per cent down at $38.27 shortly after the New York Stock Exchange opened.

Uber priced its stock at the lower end of its target range in a bid to reassure investors following the disappointing IPO of rival firm Lyft.

However, the tech giant's float was affected by investor concerns over its profitability and ongoing trade tensions between the US and China. 

“Uber shares have stumbled into the trading week, struggling to shake off the hangover from the company’s rough and rocky debut on the New York Stock Exchange last Friday,” FXTM research analyst Lukman Otunuga said.

“Its shares closed down nearly eight per cent last week thanks to investor scepticism over the company’s unprofitability and general lack of risk appetite amid escalating US-China trade tensions.

“The launch of Uber on the stock market was one of the most highly anticipated additions since Facebook shares many years ago, but it is a surprise to see how unsuccessful the launch has been given the widespread popularity of the Uber brand globally.”

Read more: Uber shares begin NYSE trading in $82.4bn IPO

Uber's shares dived 7.6 per cent on Friday after its float failed to win over investors in a market burned by Lyft's disappointing debut, which has seen its share price fall from $72 to just $49.

The troubles experienced by Uber means it is now a member of a small club of firms whose IPOs have seen the value of their shares fall below their target price on the first day of trading. That comprises just one in five IPOs, according to Dealogic.