In an interview with Cheddar Thursday, IPO Edge Editor-in-Chief John Jannarone explained that Uber’s underwriters, including Morgan Stanley and Goldman Sachs, faced immense pressure to price the IPO correctly. First, the poor performance of Lyft showed that investors are wary of a ridesharing company with no clear path to profits. Also, the fact that many Uber drivers will receive shares puts an extra onus on the company to delivery good shareholder returns. And the trade tensions caused by President Trump’s tariffs make the overall market averse to risk.
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