- Shares of Uber traded as much as 3.7% lower on Friday, sending the company’s market value sliding below General Motor’s for the first time since its initial public offering.
- The ride-hailing giant’s market value sat at $US52.3 billion on Friday afternoon, compared to General Motor’s $US53.1 billion.
- Uber’s stock has fallen more than 26% since the company went public in May at $US45 a share.
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General Motor’s market value stood at $US53.1 billion on Friday afternoon, while Uber’s fell to $US52.3 billion. Shares of the ride-hailing giant traded as much as 3.7% lower, adding to the stock’s downward spiral since it went public at $US45 a share in May.
Uber’s stock has shed more than 31% of its value since its public market debut. Investors and Wall Street analysts have continued to express concerns over the company’s path to profitability and mounting losses.
The company said it lost $US5.2 billion during the second quarter of 2019, its largest quarterly loss to date. The news sent shares plunging as much as 12%. Ride-hailing competitor Lyft has also struggled in the public markets this year with its stock tumbling more than 42% since its IPO.
While GM’s market value is now hovering above Uber’s, the car manufacturer hasn’t been without its own challenges. GM’s stock tumbled last week after the United Auto Workers union launched its first strike against the company in 12 years.
Shares of GM are still up more than 11% year-to-date.Read more: A hedge fund manager who oversees $US2 billion lays out the road to profitability for Uber and Lyft – and explains why they have a unique bull case compared to WeWork