Controversies Take a Toll on Uber’s Stock

Investors have cut the price they’re willing to pay for Uber stock on the secondary market by about 15% in recent months to a level that values Uber at around $50 billion, according to a broker, a sign of how the recent onslaught of negative news has affected the company.

Another broker said they had seen an uptick in the number of Uber shareholders looking to sell. At the same time, more buyers have come into the market, apparently looking to scoop up shares on the cheap. It’s not clear whether any deals have been struck at the lower levels. Secondary deals in Uber stock are rare, due to restrictions that the company has placed on its stock that bar direct transfers and sales.

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Uber has a share buyback program for employees, but it’s only available to employees who have worked there longer than four years, and the amount an employee can sell back is limited. The company determines the price, which is often different from what a stock can fetch in a more open market.

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Joe Lonsdale
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Uber is notoriously protective of its shares and has tried to clamp down on secondary market trading.