Uber closed in an all-time low stock price amounting to only $33.96 on Wednesday, and it has since been going down without a bright future to look forward too.
The drastic fall of Uber’s shares seems to somehow still continue up until now. For the fourth straight trading day following the huge earnings, they slid down to a $33.96 mark, which was the first time that their shares fell below the $36 margin.
Dropping down to a market cap of $57.6 billion, a total of 6.8% downfall, Uber is now down more than $12 billion just at the end of its first trading day in May.
Uber experienced a lot of losses, on its second-quarter Uber reported a net loss of $5.24 billion blaming that it was a loss coming from the stock-based compensation. On its previous quarter, Uber lost another $1.3 billion; this is even 30% worse.
As the CEO of Uber, Dara Khosrowshahi named the second quarter of Uber as a “once-in-a-lifetime” form of loss. Investors are still not sure if they would invest their money on Uber since they still find its path to be very uncertain and questioning its profitability.
After sharing its reports, uber needs to find a way on to dominate more on the business, since other companies are already taking the lead, thus causing Uber to fall down the ladder continuously.
Tusk was able to mention on CNBC that they need to make more improvements to dominate the ride-hailing and delivery service in order to reach a point of profitability.
“They’ve got to be that A-to-Z for transportation,” Tusk said. “Whether you’re getting yourself to A to B on a bike, scooter, or a car, bus, whether furniture being shipped on a truck, or a burrito from a messenger, they’ve got to be the default for all of that.”.
Getting a ride easier helps resolve the situation of being stuck in a place calling for a taxi. Uber will still need to develop some more to claim its spot back from the ladder.
