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Data: FactSet; Chart: Axios Visuals

Shares of Uber closed down almost 10% on Tuesday even though the company beat analysts' expectations on earnings and revenue.

Why it matters: It was the latest dollop of bad news for this year's crop of tech unicorns, which have largely fallen flat since going public, despite their mammoth private valuations.

What's happening: After years of ravenous buying, Wall Street turned bearish on new unprofitable companies and even investors' newfound risk appetite hasn't been enough to reverse the trend.

By the numbers: An S&P index tracking U.S. companies worth over $1 billion that have IPO’d or spun off within the last five years, has underperformed the S&P 500 by nearly 12% over the last 6 months.

  • With Beyond Meat no longer among their ranks, those unprofitable U.S. companies have had a median stock return of 0% this year, Reuters reported Monday.

The big picture: Before this year, unprofitable had been exactly what investors wanted.

  • In 2018, 81% of companies to IPO had negative 12-month trailing earnings on the day they went public, according to an analysis from University of Florida professor Jay Ritter.
  • This year, 80% of companies that had IPOs reported negative earnings in the 12 months ahead of their launch, analysis from ratings agency S&P Global shows.
  • "Had not WeWork and Endeavor pulled their IPOs in recent weeks, the figure would have been on track for the highest reading ever," S&P's director of index investment strategy Chris Bennett wrote in October.

The bottom line: Bennett notes there have been growing "signs of trouble in tech paradise, with Uber and Lyft’s post-IPO struggles and WeWork’s 'failure to launch' highlighting the potential challenge of transferring private valuations onto the public stage."

Go deeper: The fall of unicorns

Editor's note: This story has been corrected to reference the S&P U.S. IPO & Spinoff Index (not the S&P U.S. Spinoff Index).

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Updated 14 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 1 p.m. ET: 33,443,701 — Total deaths: 1,003,337 — Total recoveries: 23,200,183Map.
  2. U.S.: Total confirmed cases as of 1 p.m. ET: 7,159,222 — Total deaths: 205,345 — Total recoveries: 2,794,608 — Total tests: 102,342,416Map.
  3. Health: Americans won't take Trump's word on the vaccine, Axios-Ipsos poll finds.
  4. States: NYC's coronavirus positivity rate spikes to highest since June.
  5. Sports: Tennessee Titans close facility amid NFL's first coronavirus outbreak.
  6. World: U.K. beats previous record for new coronavirus cases.

NYC's coronavirus positivity rate spikes to highest since June

New York Mayor Bill de Blasio. Photo: Noam Galai/Getty Images

New York City's coronavirus positivity rate has ticked up to 3.25%, its highest since June, Mayor Bill de Blasio said at a news conference on Tuesday.

Why it matters: The jump — from 1.93% on Monday — came on the first day that public elementary classrooms reopened in the city after months of closures, but guidelines state that all public schools will have to shut if the citywide seven-day positivity rate stays above 3%.

Dan Primack, author of Pro Rata
2 hours ago - Economy & Business

AppHarvest is going public

Illustration: Sarah Grillo/Axios

AppHarvest, a Morehead, Ky.-based developer of large-scale tomato greenhouses, is going public via a reverse merger with a SPAC called Novus Capital (Nasdaq: NOVSU). The company would have an initial market value of around $1 billion.

Why it's a BFD: This is about to be a "unicorn" based in one of America's poorest congressional districts. AppHarvest CEO Jonathan Webb tells Axios that the company will employ around 350 people in Morehead by year-end, and that its location allows its product to reach 75% of the continental U.S. within a one-day drive.