May 10, 2019

Uber's IPO is trending down

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Reproduced from Renaissance Capital; Table: Axios Visuals

Sentiment for Uber's initial public offering has fallen precipitously since the company announced it would go public.

Where it stands: After initially setting sights on a $120 billion valuation, the company said it raised $8.1 billion after pricing shares near the bottom an already marked-down range. The price gives the San Francisco-based company a non-diluted market value of $75.5 billion.

What happened: Part of Uber's fall from grace has been Lyft's poor performance as a public company and the stock market's dreary week, but Uber also is fighting newly woke investors worried about its penchant for losing money.

  • A survey of 50 hedge funds by investment adviser Titan found that 70% of respondents were not positive on the IPO, including 46% who were bearish.
  • The "market will need to see signs of improvement in unit economics and a path to breakeven to justify the current valuation," one respondent said.

Yes, but: Uber's IPO is still set to be among the 10 largest U.S. listings ever, and the biggest since Alibaba's $25 billion offering in 2014. The ride-hailing company sold 180 million shares for $45 each, coming in at the low end of the $44 to $50 marketing range.

Go deeper: San Francisco proposes "IPO tax" on eve of Uber offering

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President Trump is calling on the Energy Department to find more places to store oil, in the wake of rock-bottom prices and an ensuing economic collapse of the sector itself.

Driving the news: Trump’s comments came Friday during a televised portion of a meeting he hosted with industry CEOs to discuss ways to help the sector. It’s reeling from a historic drop-off in demand with the world shutting down to slow the spread of the coronavirus.

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Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 4:30 p.m. ET: 1,083,084 — Total deaths: 58,243 — Total recoveries: 225,422Map.
  2. U.S.: Total confirmed cases as of 4:30 p.m. ET: 266,671 — Total deaths: 6,921 — Total recoveries: 9,445Map.
  3. 2020 latest: Wisconsin governor calls for last-minute primary election delay.
  4. Oil latest: The amount of gasoline American drivers are consuming dropped to levels not seen in more than 25 years, government data shows.
  5. Business updates: America's small business bailout is off to a bad start.
  6. U.S.S. Theodore Roosevelt: Senators call for independent investigation into firing of Navy captain.
  7. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
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America's small business bailout is off to a bad start

Illustration: Sarah Grillo/Axios

Websites have crashed, phones are jammed and confusion reigns as businesses rushed at today's kickoff to get their chunk of the $350 billion Paycheck Protection Program.

Why it matters: This is a race to save jobs in the present and the future, and to ensure that as many workers as possible keep their benefits and paychecks during the coronavirus lockdown.