Uber shares hit record low as early investors prepare for chance to sell off
Ride hailing firm Uber’s shares hit a record low today, as shareholders geared up for the expiry of its Initial Public Offering (IPO) lock-up, when early investors will be allowed to sell their stocks.
Uber’s share price fell to lows of $27.97, more than nine per cent down, eventually closing at $28.02.
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Investors were also reeling from yet another heavy loss in the firm’s third quarter results on Monday night, when it beat analyst estimates on revenue but still haemorrhaged $1.16bn (£900m), topping its $986bn loss during the same period last year.
Chief executive Dara Khosrowshahi told broadcaster CNBC the firm is hoping to turn a profit for the first time in its history in 2021.
“While we haven’t finalised our planning – and it’s going to take a lot of hard work from a lot of folks – we are actually targeting 2021 for adjusted EBITDA profitability full-year.
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“We know there’s expectation of profitability and we expect to deliver it for 2021.”
Both Uber and arch-rival Lyft have relied on heavy subsidies to attract riders in the past. Both are still making losses, but are ploughing money into new initiatives. In Uber’s case, these include food delivery via Uber Eats, freight hauling and autonomous cars. It even announced a move into financial services, late last month through its Uber Money venture.