Most investors who owned stocks in the past year have lost money. the SPDR S&P 500 SPY (NYSE: NYSE:SPY) total return in that time is roughly -4.8%. But there’s no question some big-name stocks have done much better than others in that stretch.
Uber’s Bumpy Ride Unfortunately, one stock that has struggled mightily since April of last year is ridesharing giant Uber Technologies Inc (NYSE: NYSE:UBER).
Uber was founded back in 2009 and was one of the highest-profile IPOs of the 21st century in May of 2019.
Uber had once hoped to land a $120 billion IPO valuation, but it ultimately dropped its valuation down to around $75 billion. Uber raised $8.1 billion via its IPO, making it one of the 10 largest IPOs in history.
Uber priced its IPO at $42, and the stock began trading on May 10, 2019. Uber’s IPO came about one month after top ridesharing competitor Lyft Inc (NASDAQ: NASDAQ:LYFT) had gone public. Lyft’s life on the public market got off to a horrendous start, and the stock was already down about 30% by the time Uber’s IPO rolled around.
The Start Uber shares got off to a relatively stable start compared to Lyft, grinding as high as $47.08 by late June. Unfortunately, that level still represents the stock’s all-time high. Mounting losses, slowing revenue growth, and rising costs soon had investors questioning the stock’s valuation and sending share prices drifting steadily lower.
Uber eventually dropped as low as $25.58 in early November 2019. However, once concerns about the stock’s lock-up expiration had passed, Uber shares caught a bid once again. Unfortunately for Uber investors, the rally that started in November stalled out at $41.86 in February 2020 before COVID-19 fears sent the stock plummeting to a new all-time low of $13.71 in March.
2020 And Beyond Uber's stock took a wild ride, reaching highs of more than $60 in April 2021. But, like many other growth stocks, it has gotten absolutely hammered since then, currently trading below $23 a share. Uber has tried many new business models, from food delivery to electric scooter rentals, but nothing seems to be attracting investors.
In fact, $100 worth of Uber IPO stock in 2019 would be worth about $55 today.
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