Uber Closes Below IPO Price: Will Investors Believe the Profit Story?

Shares of ride-hailing giant Uber Technologies (UBER) opened Friday on the New York Stock Exchange at $42, below the initial public offering’s price of $45 set the night before. The stock then ended the day at $41.57 — down 7.6% on the session — and where the stock goes from here will reflect not only the depth of investors’ affection for new tech issues, but also whether they believe more in Uber’s potential profit story or its messy current reality. Uber comes to market with slowing growth on several metrics,…

Pinterest, Zoom Surge on Debuts, But Can They Avoid Lyft’s Fate?

Investors got a second and a third bite of the apple on Thursday as two more internet tech names went public following the rocky debut of Lyft (LYFT three weeks ago Both Pinterest (PINS and Zoom Video Communications (ZM  surged at the open. Pinterest opened at $23.75, 25% above its initial offer price of $19, while Zoom started at $65, 81% above its offer price of $36. Will they hold onto these gains, or will either follow the fate of Lyft, which started trading March 29 and is down about 34% from its highs. Thursday’s close…

Lyft’s Uber Shock Means It’s Time to Separate IPO Wheat from the Chaff

The excitement of IPOs fades fast as the offerings hit the market and reality sets in. It took less than two weeks for the IPO euphoria to cool. Shares of Lyft (LYFT are now down 31% since their opening trade on March 29. The decline began the second day of trading but was accelerated by the announcement after Thursday’s close that Uber, its much larger rival, finally filed its own offering with the Securities and Exchange Commission. Lyft fell 1.8% in Friday to a new closing low of $59.90.  Uber is probably…