Uber shares reach all-time low amid unprofitable Q2 2019
Uber’s share price reached its all-time low on Wednesday, August 14, as the company revealed disappointing Q2 2019 results, according to CNBC.
The price of Uber shares at the closure on Wednesday was at $33.96, which is the first time when the company’s shares slide below $36 since its IPO. The decline continues for the fourth consecutive trading day.
Uber’s stock fell 6.8% the same day, with the company’s market cap losing around $12 billion since Uber went public in May 2019. At press time, the market cap was $57.6.
Earlier in August, Uber revealed its Q2 2019 report. Its net loss comprised $5.24, including $3.9 billion of stock-based compensation expenses. However, the loss of $1.3 billion, excluding the compensation, is still 30% worse than the company’s Q1 results.
Prior to the IPO Uber set its valuation at $120 million, pitched to the company by Morgan Stanley and Goldman Sachs. However, Uber was finally listed with $75.46 billion market cap.
Meanwhile, Uber’s direct competitor Lyft also saw a 7% decline to $54 per share. The Financial Times links the decline to the recent market collapse and S&P 500 losses in particular.