FIRST AIRED: May 13, 2019

Nice work! Enjoy the show!

×

You’re busy. We get it.

Stay on top of the news with our Editor’s Picks newsletter.

US Edition
Intl. Edition
Unsubscribe at any time. One click, it’s gone.

Thanks for signing up!

×

Transcript

00:00:00
it's only its second day of trading in Hoover shares are tanking the stock falling as much as eleven percent on Monday sending shock waves through Silicon Valley Hoover had price chairs at forty five dollars each but in a rocky debut Friday stop got humbled uber lost billions of dollars in value that steep slide continuing into Monday Reuters correspondent no rand which in San Francisco this is a few things are weighing on the stock this is obviously a surprise of but %HESITATION on unhappy surprise for anybody who bought into the I PO %HESITATION but but it is not surprising from the point of view that we're seeing a broader stock market selloff today that's related to president Donald trump's trade conflict with China when the when the stock market sells off in this in this way it's to tends to be the riskier stocks the rooster riskier assets that that fall the fall the furthest and that certainly is the case %HESITATION when it comes to uber and it's drive a lift lift is down thirty four percent since it went public in March taking list dismal performance into account Hooper had already lowered its valuation expectations twice in two months before going public and priced its initial public offering at the low end of the targeted range over went into its its I PO with %HESITATION a really interesting mixture of of hype and skepticism as well it's that it was the the the but the most anticipated IPO since Facebook S. in two thousand and twelve at the same time there's a lot of puzzlement in bath among investors about how the heck to valley this company since it doesn't have any profits and it hasn't been able to save one it will make a profit %HESITATION the stock is now down a total of sixteen percent from the conservative price that was given %HESITATION late last Thursday Hoover CEO on Monday trying to ease concerns over the flop debut in an email to staff he wrote , quote sentiment does not change overnight and I suspect some tough public market times over the coming months