Uber the rideshare tech company, its stock tanked on its first official trading day on the NYSE, Friday, May 10, 2019 will be a day of turmoil on the Uber corporate calendar. It was a horrible trading day for the mammoth ride sharing tech company.
Uber declined close to 8% during the stock market trading day. The stock plummeting so much (in which it did), is the first time any stock has come out the gates on Wall St and lost so much market share. The valuation of Uber was at $76 billion dollars, when analysts had predicted that it would be valued around $90-$100 billion dollars, well that didn’t happen. Not only that, Uber has been bleeding money and the perception is that, Uber won’t actually make any real money until the year 2024, hopefully.
Uber being one of the biggest IPO companies probably since Alibaba, Facebook and a few others. So it to falter as it did was a shocker to some and to others, not so much. Technology companies tend not to fare well in the beginning of their IPO presence. Facebook had a rocky start coming out the gates and other big tech companies before it, have gone through similar revelations.
It’s the test of time that will dictate the longevity of Uber’s existence and if they can navigate their ship in theses rough and turbulent stock market waters. -SB
1) A second crash of a new Boeing 737 MAX 8 airliner, in just months, is raising doubts about its safety. Speaker Pelosi is calling on Boeing to ground all 737 MAX 8 airliners. The airliner was one in Ethiopia’s airline fleet, which like the first one, crashed just after takeoff killing all onboard. Reportedly, one of the Ethiopian pilots had only 200 hours experience, while American pilots typically average about 1,500 hours. In America 200 hours is only enough to qualify for a commercial license, but doesn’t allow a pilot to fly aircraft over 12,500 pounds (airliners). General rule – that at 300 hours a pilot is considered most dangerous and overconfident, and so gets into trouble, but doesn’t have the experience to get out of trouble.
2) The sudden questions of the Boeing’s 737 MAX 8 airlines caused Boeing’s stock to drop 9%. But even with a 9% drop in Boeing stock, the rise in tech stocks pushed the overall stock markets up.
3) Facebook is facing ever increasing series of problems starting with Senator Elizabeth Warren’s proposal to break up the company, then came Facebook’s longest outage of network and services. Followed by news of a criminal investigation into data agreements with other companies, then two of Facebook’s top executives left the company. Finally, the live movies of the New Zealand’s shooting massacre focusing the growing problem of hate on social media.
4) 15 MAR 19 Stock market closings:
Dow 25,848.87 up 138.93 Nasdaq 7,688.53 up 57.62 S&P 500 2,822.48 up 14.00
1) This next week, the markets promises to be positive because the big high-tech companies will be releasing their accounting statements with anticipation of healthy profits.
2) Germany announces it will close down all its coal fired power plants by 2038, which presently generates about 40% of Germany’s electrical power.
3) Facebook announced its plan to integrate it’s Whatsapp, Instagram and Messenger services so they can argue that the three are the same service, thereby avoiding anti-trust allegations and possible actions aimed at breaking up monopolies.
4) 25 JAN 19 Stock market closings:
Dow 24,737.20 up 183.96 Nasdaq 7,164.86 up 91.40 S&P 500 2,664.76 up 22.43
1) The question of ‘monopoly’ for the large tech companies is starting to come to light as a results of congressional questions about the power and influence of such companies as Amazon, Facebook and Google.
2) There are four major retailers on ‘death watch’ for 2019, and they are Barns & Noble, Kmart, JC Penny and Sears. This is particularly important concerning the viability of a consumer based economy.
3) There are talks circulating around Washington of easing the tariffs on China. However, there has been little progress in negotiations, in particular issues of intellectual property.
4) 17 JAN 19 Stock market closings:
Dow 24,370.10 up 162.94 Nasdaq 7,084.46 up 49.77 S&P 500 2,635.96 up 19.86