Uber finally stopped the bleeding on Wall Street, but it still has a lot to prove.
The stock rose more than 7% Tuesday after its lackluster debut on Friday. But its shares remain 11% below their initial public offering price. If Uber (UBER) hopes to motor even higher, it will need to persuade investors that it can find a road to profitability relatively quickly, and convince them to stick around for the long haul.
Many investors remain unconvinced that Uber can turn around its fortunes, because it remains in a tough battle for market share with rival Lyft (LYFT). And Lyft’s stock has sunk too since it started trading in late March.
Uber lost $1.8 billion in 2018 — more than any US startup has ever lost in the year prior to going public, according to S&P Global Market Intelligence. Its growth is slowing. It has a difficult relationship with its drivers. And competition is ramping up.