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Uber shares drop further as markets slide


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Reuters

Uber’s share price has fallen another 8.5% amid wider stock market turmoil, as the trade war between the US and China escalates.

Shares in the ride-sharing app dropped further below the $45 price they began trading at on Friday when the company made its stock market debut.

Uber has begun trading as a public company just as the US and China have stepped up the level of trade tariffs.

The Dow Jones Industrial Average sank more than 2% on Monday.

Since floating on Friday, Uber has seen $18.6bn wiped off its market valuation to $63.7bn as its share price dropped to $38.16.

Analysts at Wedbush Securities said that Uber had clearly not had a “storybook start” as “investors continue to grapple with the valuation of the tech transportation stalwart especially in the backdrop of a risk-off vibe on the heels of heightened US-China trade tensions and market choppiness”.

On the wider market, US markets were hit by news that China plans to impose tariffs on $60bn (£46bn) of US goods from 1 June.

The move comes in retaliation to the decision by President Donald Trump last week to more than double levies on $200bn worth of Chinese imports to 25%.

The US is also considering increasing tariffs on all the remaining goods it buys from China, estimated to be valued at around $300bn.

The S&P 500 share index was also down 2%, while the Nasdaq fell 3%.



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