We are investigating Uber Technologies Inc. (UBER) (“Uber” or the “Company”) for potential violations of the federal securities laws.
On or about May 10, 2019, Uber conducted an initial public offering (“IPO”) through which the Company offered 180 million shares to the public at a price of $45.00 per share. In July 2019, Uber announced the termination of one third of its global marketing workforce. On this news, Uber’s stock price fell $3.54 per share, or 8.31%, between July 30 and August 5, 2019, closing at $39.05 per share. Then, in August 2019, Uber announced severely negative second quarter 2019 financial and operating results, including revenues of only $3.16 billion and losses of $5.2 billion. The Company also revealed that its ridesharing revenue growth had slumped to only 2% and that it sales and marketing expenses for the three and six months ended June 30, 2019 had spiked by 70.9% and 62.5%, respectively. On this news, Uber’s stock price fell another $5.97 per share, or 13.89%, between August 8 and August 12, 2019, closing at $37.00 per share. Since the IPO, Uber’s stock price has closed as low as $29.00 per share, representing a decline of 35.56% from the IPO price.