SimpleFX Blog
    Facebook Twitter Instagram
    Tuesday, June 28
    Facebook Twitter LinkedIn Telegram YouTube
    SimpleFX BlogSimpleFX Blog
    Banner
    • Home
    • News
    • Tutorials
    • Updates
    • Opinion
    • Trading Academy
    • Trading Schedule
    SimpleFX Blog
    Home»News»Uber stock is looking for its market price after the disappointing IPO
    News

    Uber stock is looking for its market price after the disappointing IPO

    Natalia AlvarezBy Natalia AlvarezMay 14, 2019Updated:May 14, 2019No Comments3 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email

    Investment bankers at Morgan Stanley are set to get millions of dollars from fees after leading the public offering by Uber Technologies Inc. last week. Wealthy clients, however, face losses.  

    Back in 2016, Morgan Stanley allowed its elite clientele to take early advantage of Uber’s market listing as the investment bank raised private money for the ride-hailing company.

    [button link=”https://app.simplefx.com/login” size=”medium” target=”new” text_color=”#eeeeee” color=”#df4444″]SELL Uber[/button]        [button link=”https://app.simplefx.com/login” size=”medium” target=”new” text_color=”#eeeeee” color=”#3cc195″]BUY Uber[/button]

    Friday saw the stock fall by over 7% on its starting point, which meant the early buyers, as well as everyday shareholders,  lost – for now, at least. On Monday in New York, shares fell even further by 8.3% at 0935.

    The Uber stock fell in the first two days of trading at NYSE. However, the Monday trading ended with a strong green candle (in a 5-minute chart)

    A fund named New Riders LP offered wealth management clients the opportunity to invest in Uber. Morgan Stanley’s pitch offered share prices of $48.77, which would be holdings of Class A stock in the IPO. Documents showed the employees of Morgan Stanley were also able to invest under similar conditions.

    The minimum investment amount was $250,000, and Morgan Stanley said that charges of up to 2% of the initial investment could be applied. Uber was valued at a ‘reasonable’ level of $62.5 billion, given the growth opportunities and competitive advantages of the company. Risk factors were listed as operating expense rises and loss years.

    It remains unclear have much these wealthy customers or employees have contributed to this fundraising. Morgan Stanley declined to comment.

    It could be that Friday’s debut is an anomaly. The decline of the stock to $41.57 has coincided in the morning with a broad selloff of stock, Lyft Inc.’s weak earnings report and the trade talk problems between China and the U.S. When the market opened on Monday, Lyft was expected to fall alongside Uber. Uber’s stocks fell to $37.17, a loss of 10% whereas Lyft only fell 5.3% to $48.35.

    There is tension, therefore, as Morgan Stanley is leaning on its wealthy investors to supply more funding to companies in the Silicon Valley so that they have time to build up their businesses before they go public.

    Uber’s IPO might now be put to the test depending on their wealthy clients’ reaction if things don’t go well.

    Andy Saperstein leads the wealth management division and has helped clients place bets on the rise of startups from Silicon Valley. Dennis Lynch, the manager of the fund, was a part of Morgan Stanley’s earliest wagers on Twitter Inc. and Facebook Inc. before they were public. He also oversees the investment management division’s portfolios at the bank as well as having other funds with exposures to unicorns like Palantir Technologies Inc.

    This prowess in linkups helped Morgan Stanley get mandates above other companies like Goldman Sachs. Morgan Stanley managed to be the first to be listed on the IPO.

    [button link=”https://app.simplefx.com/login” size=”medium” target=”new” text_color=”#eeeeee” color=”#df4444″]SELL Uber[/button]        [button link=”https://app.simplefx.com/login” size=”medium” target=”new” text_color=”#eeeeee” color=”#3cc195″]BUY Uber[/button]

    Morgan Stanley’s clients now have to wait with bated breath and hope. They are prohibited from dumping shares in Uber for 180 after the offering.

    featured stocks Uber
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleWill US tariffs talks (and rumors) affect forex price movements this week?
    Next Article Three speculations on why Bitcoin soars over $8,000 while Ethereum, Ripple and others follow
    Natalia Alvarez

    Related Posts

    A Possible Rebound Scenario for Japanese Stocks?

    June 28, 2022

    How Long the Recent LTCUSD Run Can Last?

    June 24, 2022

    Is BMW Worth It After the New China EV Plant Activation?

    June 23, 2022

    Leave A Reply Cancel Reply

    Copyright © 2022. SimpleFX
    • SimpleFX WebTrader
    • Unilink Affiliate Tracker

    Type above and press Enter to search. Press Esc to cancel.

    We and our partners use cookies for analytics purposes and to serve personalized ads. You can view our privacy policy here and our cookies policy here
    Accept.
    Privacy & Cookies Policy

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
    Non-necessary
    Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
    SAVE & ACCEPT