Uber (UBER) - Get Uber Technologies, Inc. Report made its first trade at $42 a share on its New York Stock Exchange debut Friday, some $3 shy of the IPO price that valued the ridesharing group at $82.4 billion, amid a volatile market backdrop and ongoing controversy over its business practices.
The opening trade of 32 million shares was a disappointment for the bookrunners, who had priced the shares at $45 each last night and watched the market retreat, along with broader U.S. equity benchmarks, amid concerns over the fate of a U.S. China trade deal.
Uber shares were indicated at $46 to $48 each at the opening bell, after it priced the 180 million share offering at $45 each, near the bottom of the $44 to $50 range its Wall Street advisors had marketed the stock to investors in the weeks prior to today's listing, reported TheStreet's Martin Baccardax.
So, what should investors do now?
"I mean, you know, again, I'm mindful it's the middle of the day. If Morgan Stanley uses my strategy of letting all the weak hands out and then coming in with a blitz of orders, then I think you're going to say, well, you know, why didn't Jim say buy it right then? This is now people have to understand and I haven't done a lot of syndicate work," Jim Cramer said. "This is not manipulation. You're allowed to do certain things on a day like today, if you're a broker that you typically couldn't do and what they need to do is wait a little bit longer, make sure everybody who was worried is gone, and then boom. So I don't want to say it's over. Okay. I don't want to say it's over. It's too early. I will say that that is the only part of the playbook that's left and it must be done in order to make it so that we do not have a really ugly, ugly day."