Uber’s market debut excites the exchange, NYSE Chief Operating Officer says
New York Stock Exchange Chief Operating Officer John Tuttle told FOX Business the exchange is looking forward to Uber’s market debut on Friday.
He stated that there are many things investors and companies look at when trying to determine the best time for a company to go public.
“They're looking at consumer confidence, unemployment and other metrics which are all still strong, so that's why we've seen Uber come public this week and why we've seen a strong pipeline of companies in Q2,” he said during an interview on "Cavuto: Coast-to-Coast" Wednesday.
The ride-hailing company is on track to price its initial public offering (IPO) at the midpoint of its target, between $44 to $50 a share, or about $80 billion to $90 billion in valuation. The Wall Street Journal also reported Uber executives have discussed with their underwriters, as well as Lyft’s, what went wrong with its rival’s listing in an effort to prevent it from happening with Uber.
But Tuttle said market conditions and individual business models are more of a factor for whether or not investors decide to jump into recent technology IPOs.
“If we look more broadly at Q2, Lyft was one transaction. But we can look at other technology deals like Jumia, Pinterest, Tufin, PagerDuty and others who have all performed quite well in the weeks, and in some cases months, following their listing. So, investors are looking at these companies on a case-by-case basis,” Tuttle said.
When asked about thoughts on current market conditions, Tuttle told FOX Business, he believes market fundamentals remain strong and the bull market has proven “resilient.”
“I am actually excited because I think this economic environment has created an opportunity for many companies to come to market... It's important that these companies come to market because we're allowing investors the opportunity to participate in these companies' success, whether they are investing for their own accounts or their children's college or for their retirement, etc. So when these conditions are right, it's a good opportunity for all parties involved,” he said.
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Uber had a $3 billion operating loss last year and an additional $648 million interest expense. Revenue growth slowed from 106 percent in 2017 to 42 percent to 2018 and from 18 percent to 20 percent in 2019. Last year, Uber reported revenue of $11.3 billion.