Uber’s shares never traded above the target price of $45.

The most highly anticipated IPO of the year quickly turned into one of the biggest disappointments. Friday was Uber’s first day on the stock exchange and after trading at $42 per share, the stock fell more than 7% by the end of the day.

On Thursday, the company sold 180 million shares at $45 each but come Friday, the shares never once traded above that price point. All in all, Uber lost nearly $6 billion on its first day as a public company.

And the stock doesn’t seem poised to rebound quite yet. As of Monday morning, shares were down another 2.3%.

Skepticism about the ride-sharing industry

The stock closed with a market cap of $69.7 billion, which is far below the market valuation of $75.46 billion. It’s unclear if Uber will ever generate a large profit for investors as anticipated when the company first announced it was going public.

This drop could reflect the skepticism many people have about the ride-sharing industry in general. Not to mention, investors were already concerned after Lyft’s disappointing stock performance.

Uber isn’t expected to become profitable anytime soon. And it is unclear whether Uber and its rival Lyft will be able to maintain an independent contractor status for its drivers.

Uber has lost more money than any other company to ever go public. The company has compared itself to Amazon, which also spent years losing money.

However, Uber did get hit with a number of events outside of its control. The Dow was already down more than 300 points due to President Trump imposing higher tariffs on China. Uber also went public on the stock market’s worst performing week of the year.

Conclusion

The fact Uber has become a $76 billion company in less than 10 years can’t be discounted. And in pitches to potential investors, the company touted plans to expand into logistics, autonomous vehicles, and mass transit.   

Uber CEO Dara Khosrowshahi said Uber’s rough start was due to the trade war currently going on between the U.S. and China. Khosrowshahi added, “You can’t pick when you go public, but you can control how you execute as a company.”

And many analysts still see the vision of what Uber could accomplish. Wedbush analyst Dan Ives seemed unconcerned about Uber’s first day of trading, saying that it’s what the company can accomplish in the next decade that matters.