Uber gets punished on the stock market after announcing losses of almost 6 billion dollars
Uber shares fell 3.91% at pre-market open on the New York Stock Exchange to $40.32 after the company announced losses amounting to $5.799 billion through September. Despite this, these losses are 22% less than those registered a year earlier, when they amounted to 7.41 billion dollars due to an expensive IPO in May 2019.
Uber has not managed to bring its accounts back in 2020 due to the Covid-19 pandemic, which has reduced mobility to a minimum and cut its revenue by just over 1 billion. As an alternative, in order to survive during the confinements, Uber promoted alternative services such as the distribution of food or merchandise.
The drops announced in the pre-opening contrast the strong rise that Uber's titles registered last Wednesday, when they shot up almost 15% after the California Justice decreed that the group can have independent drivers, not necessarily hired employees. In addition, so far this year, Uber has accumulated a revaluation of just over 40%. In 2019, it closed with a decline of 28%, following its IPO in May.
Source: Admiral Markets MetaTrader 5. Uber CFD Daily Chart. Data range: from May 20, 2019, to November 6, 2020. Prepared on November 6, 2020, at 10.30 a.m. CET. Keep in mind that past returns do not guarantee future returns.
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