Uber stock tanks for second day after weak debut

It is another down day for market newbie Uber as the ride-hailing's stock fell more than 10 percent on Monday to the $37 a share level following its weak market debut.

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TickerSecurityLastChangeChange %
UBERUBER TECHNOLOGIES INC.31.12+0.99+3.29%
LYFTLYFT INC.39.80+0.32+0.80%

On Friday, the company began trading at $42 per share, after it priced shares at $45, and continued its slide closing down 7.6 percent on its first day of trading on the New York Stock Exchange. Some sources initially blamed the Big Board for not running a more successful market debut for what is one of the largest IPOs in history.

The company is currently hovering at around a $62 billion market valuation, which is nearly half of the $120 billion it was reportedly seeking as it was preparing to go public.

One of the biggest concerns for investors heading into its debut Friday was the company's ability to turn a profit amid massive spending. While revenue grew 42 percent to $11.3 billion in fiscal 2018, the company lost $1.8 billion, excluding some transactions, and spent $14.3 billion last year in the lead up to its IPO.

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In its S-1 filling, the company admitted it could not guarantee if or when it will turn a profit either.

It's debut also follows its top competitor Lyft's rather weak debut. After initially surging in price, its shares have struggled in recent weeks amid the same concerns about profitability.

Lyft's shares were down more than 6 percent on Monday.