Indeed, Uber was valued as high as $120 billion following a big private funding round past year.
A market value of less than US$70 billion is a considerable climb down from earlier projections: past year, bankers jockeying to lead the offering told Uber it could be valued at as much as US$120 billion in an IPO.
Even the IPO price set on Thursday was a disappointment compared to some expectations. As of writing, Lyft is trading at just $52.27 from a high of more than $78.
In distributing the stock, Uber prioritized shareholders - particularly institutional investors - that it thinks will hold on to the shares for a long time.
The first day as a publicly traded company did not bring what Uber and its investors hoped for.
The US-China trade war and the Uber drivers strike might have also affected the debut, but the price is still expected to level out and the company should become more attractive for investors, the analyst believes.
While both companies are banking on autonomous vehicles in the future to help them establish a profitable business, that is still some ways off, if ever, and there is already considerable skepticism among customers about the safety of self-driving cars.
Uber is due to begin trading on the New York Stock Exchange on Friday under the symbol "UBER", the most anticipated U.S. debut since Facebook seven years ago.More news: South Africa ANC takes early lead in election results
Like numerous IPO class of 2019, including Lyft and Pinterest Inc., Uber is unprofitable.
By Joshua FranklinNEW YORK:Uber Technologies Inc priced its initial public offering on Thursday at the low end of its targeted range to raise $8.1 billion, adopting a risk-averse stance toward the most high-profile US listing since Facebook Inc seven years ago.
Despite's Friday's setback, Uber has been a spectacular investment for its early investors.
As of this writing, Uber shares are trading at $43.29.
By 9:45 a.m. ET, two full hours before the stock opened for trading, more than 9,000 orders to buy Uber had been placed on TD Ameritrade Holding Corp. Uber eventually hired Dara Khosrowshahi as CEO. Meanwhile, in the United States, Uber is starting to lose market share to Lyft.
The company weathered controversies including the unearthing of a culture of sexism and bullying at Uber to a US Department of Justice federal investigation, which culminated in the resignation of co-founder and Chief Executive Travis Kalanick in 2017. Uber's revenue previous year surged 42% to $11.3 billion while its cars completed 5.2 billion trips around the world either giving rides to 91 million passengers or delivering food.
Uber, Khosrowshahi said, is dealing with a potential $12 trillion market so "it makes sense to lean forward".