Jim Cramer weighs in on Uber, which had its lock-up period expire Wednesday, Nov. 6.
Shares of ride-hailing giant Uber (UBER) - Get Report touched record lows on Wednesday, with the stock backing up more than 6% at the open as the lockup period on the company's shares held by early investors and employees expired, opening the window for insiders to sell their shares.
With this week's losses, the ride-hailing and the food-delivery-ordering stock has fallen 38% from its $45 initial public offering price. With Wednesday's lockup expiration, an additional 84% of the company's current fully diluted share count comes onto the market, reported TheStreet's M. Corey Goldman.
That translates into some 763 million additional shares, or $20 billion of Uber stock, hitting the market, Wedbush analyst Daniel Ives estimated in a recent research report.
The lockup expiration could "cause an avalanche of selling as early investors and insiders hit the bid, which remains a major Street worry around near-term pressure," Ives wrote.
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