Tech IPO Flops

Abstract

In the Spring of 2019, the world’s eyes were on Uber as the ride-hailing giant geared up to debut on the open market at $45 a share. Investors, on the edge of their seats, were simultaneously nervous and hopeful that the shares offered in the initial public offering (IPO) would experience that first day jump in value caused by a rush of individual investors trying to get in on the action. They hoped that public perception would match that of the private investors that had gorged Uber with so much venture capital in the years prior. But alas, it was not meant to be—a debacle erupted as the value of the company’s shares plummeted from the opening price on that first day.