Buybacks have gotten a bad rap from both Republicans and Democrats. But stocks would be trading at a massive discount without them.Marketsread more
Fiat Chrysler and France's Renault could soon partner up to take on the sweeping changes to the global auto industry, according to a report in the Financial Times. The...Autosread more
Microsoft shares have gained 133% since November 2015, outperforming a tech "basket of unicorns" over that stretch.Technologyread more
The president's state visit comes amid tensions with carmaker Toyota over potential auto tariffs. Trump has repeatedly threatened Japanese and European carmakers with tariffs.Traderead more
When commercial real estate investor Manny Khoshbin spent $2.2 million on the fastest production car in the world, he had no idea it would very quickly also become the...Autosread more
The IRS is about to release a new draft of Form W-4, which will more closely reflect the changes stemming from the Tax Cuts and Jobs Act. For workers, that means they'll need...Personal Financeread more
The Mega Millions jackpot has spilled over $400 million. It would be the ninth largest winning since the game began in 2002.Personal Financeread more
Trump was speaking at a meeting of Japanese business leaders in Tokyo during his state visit to Japan on Saturday.Marketsread more
The biggest U.S. gasoline price surge in years is running out of steam just in time for the start of the summer driving season.Energyread more
The federal minimum wage has remained $7.25 per hour since 2009. But several states, and even some companies, have since taken matters into their own hands to pay employees a...Workread more
Stocks rose on Friday, but notched weekly losses as investors worried the U.S.-China trade war is hurting economic growth.US Marketsread more
(Adds details from CEO Dara Khosrowshahi's email to staff; Updates shares)
May 13 (Reuters) - Uber Technologies Inc's shares fell as much as 12% on Monday, more than doubling their losses since the ride-hailing giant's poorly received Wall Street debut on Friday and raising more questions about investors' faith in its ability to make profits.
The fall in shares come against the backdrop of a global stock market selloff sparked by renewed trade tensions between the United States and China.
The stock hit a low of $36.58, valuing the company at about$14 billion less than the IPO price of $45. Shares of smaller rival Lyft Inc, which went public at $72 a share on March 29, was down 7.3% at $47.38.
The stock "did not trade as well as we had hoped post-IPO", Chief Executive Dara Khosrowshahi wrote in a memo to employees that was seen by Reuters.
"Today is another tough day in the market," Khosrowshahi said, citing examples of Facebook and Amazon as their shares had initially struggled after going public.
"As the market sees evidence, sentiment will improve, and as sentiment improves, the stock will follow."
Uber lowered its valuation expectations twice in the past two months to address investor concerns over its mounting losses, and finally priced its IPO at the low end of the targeted range in a bid to avoid Lyft's stock market struggles.
"In the last couple of weeks we have noticed investors questioning more about how good of a business model is ride sharing really," said Tom White analyst D.A. Davidson.
While both Uber and Lyft are trying to find ways to lower driver costs to become profitable, drivers went on a protest in several U.S. cities earlier this month demanding job security, livable incomes and a cap on the amount ride-hailing companies can collect from fares.
Many investors are concerned about rising costs associated with booking fees shared with drivers, said Daniel Morgan, a senior portfolio manager at Synovus Trust.
Morgan said this expense will only rise as the company increases sales and demand for drivers grow.
Investors have struggled to figure out how much Uber and Lyft are worth, given both companies have not estimated a timeline for turning a profit.
Lyft posted a $1.1 billion quarterly loss last week and forecast losses would peak this year as it controlled expenses and got more revenue from each customer.
Uber has warned in a regulatory filing that it may never be profitable.
Investors are questioning whether achieving profitability will require these businesses to either raise prices for consumers or reduce service levels, White said.
Wedbush analyst Ygal Arounian said investors need to be patient as Uber reaches full monetization potential with its ride-sharing platform and a broader growth engine with Uber Eats, Uber Freight and autonomous driving initiatives.
"While it will take time for the stock to settle and Uber must execute flawlessly over the coming 12 to 18 months, we believe a $100 billion+ market cap is warranted," said Arounian, who has an "outperform" rating on the stock. (Reporting by Supantha Mukherjee and Vibhuti Sharma in Bengaluru; Additional reporting by Joshua Franklin in New York; Editing by Patrick Graham, Shounak Dasgupta and Anil D'Silva)