Uber shares fell 10.75% on Monday, adding to their almost 8% drop on Friday, and appearing to solidify a public market verdict that the company’s financials leave a fair amount to be desired. There’s no doubt that Uber’s stock was caught in the downdraft that hit global equity markets as U.S.-China trade tensions escalated. But just like Friday, Uber’s loss was much worse than market benchmarks including the Dow and the S&P 500, which each fell about 2.4% on the day.
It’s another dose of reality for the ride hailing giant and darling of private investors, which once aimed for a valuation as high as $120 billion but as of the end of the day was worth about $62 billion.
As the shares tanked, Uber CEO Dara Khosrowshahi sent a note to employees seeking to reassure them that it was early days, that the company had the capital it needed to reach profitability and that he believed in its prospects.
Uber’s smaller rival Lyft, meanwhile, also had a rough day, with its stock dropping 5.75%.