On June 14 at 10:30 AM EDT, Uber Technologies (UBER) was down 0.8% on the day after rising 5.1% on June 13. As of yesterday’s close, the stock had risen 9.7% so far in June, outperforming the broader market and its direct peer Lyft (LYFT). The S&P 500 Index and the Nasdaq Composite Index have risen 5.1% and 5.2%, respectively, in June so far, while Lyft stock has risen 6.2%.
Uber doesn’t want workers watching its stock price
Earlier today, Uber’s chief international business officer, Brooks Entwistle, told the Wall Street Journal, “We’re trying to get our people not to watch that price every day.” He added, “It’s a long game, it’s a long road.”
Entwistle’s comments come nearly a month after Uber CEO Dara Khosrowshahi tried to motivate the company’s employees in an email on May 13 after its stock fell nearly 18% in the first two days of trading. According to his letter, which was obtained by Bloomberg News, Khosrowshahi said, “Like all periods of transition, there are ups and downs. Obviously our stock did not trade as well as we had hoped post-IPO.”
Uber CEO blamed tariffs
Both US ride-sharing companies Uber and Lyft fell sharply after going public. On June 11, Khosrowshahi blamed the US’s trade war with other nations for Uber’s disappointing stock market performance so far. He believes that the company “got caught up a bit in the market swirl. And there’s nothing you can do about it.”
However, uncertainty about the future growth potential of the ride-hailing business could be another factor that’s keeping investors worried and driving Uber stock down.