Ride-hailing giants Uber are set for a bumpy day on the stock-market following record share price lows.
Yesterday, the transport company’s share price dropped to $27.97 during the day and eventually closed down 9.85% at $28.02.
Investors are today gearing up to the possibility of selling their Uber shares following the expiry of its Initial Public Offering (IPO) lock-up. Early investors in the minicab and food delivery firm will now be able to sell their stocks.
The drop in share price comes following another reported financial loss in Uber’s third quarter results. Yesterday’s announcement showed the firm losing a hefty £900million ($1.16billion).
In its second quarter Uber posted a $5.24bn loss, which represented the largest quarterly loss in the company's history. Those losses had been accrued after Uber paid nearly $4bn in expenses and stock based compensation during the second quarter. They also paid out just under $300m to drivers relating to its IPO.
According to CNBC, Uber’s Chief Executive Dara Khosrowshahi told the broadcaster that the firm expect to be profitable for 2021. He said: “We know there’s expectation of profitability and we expect to deliver it for 2021.”