What a hellish week for Uber.
- On Sunday, President Trump surprised investors by threatening to impose higher tariffs on China in a tweet. The market swung wildly amid concerns of an escalating trade war between the United States and China.
- Then on Tuesday, Lyft reported its first earnings report since going public, which revealed more than $1 billion in losses during the first three months of this year. Lyft stock continued its decline the day after. At one time, Uber rooted for Lyft to fail. But as the closest proxy to Uber on the public market, Lyft's stock decline only made Uber's IPO pitch that much harder.Daniel Ives, an analyst with Wedbush, said in an investor note this week that Lyft's stock performance, combined with broader market jitters, likely "caused Uber to look at a more conservative price range based on its demand for its IPO."
- And if all that wasn't enough, Uber and Lyft drivers staged strikes in numerous cities on Wednesday ahead of the IPO. The drivers are seeking livable incomes and job security at a time when Uber will likely only face greater pressure from investors to find ways to move toward profitability.