Uber stock hits a new all-time low as shares continues to slide following $5 billion Q2 loss

Dara Khosrowshahi, CEO of Uber, speaking at the 2019 WEF in Davos, Switzerland on Jan. 23rd, 2019.Adam Galica | CNBCShares of Uber hit a new all-time low of $35.08 during intraday trading on Wednesday as the stock continues to slide on its earnings whiff. It was the first time the stock fell below $36. The stock was down more than 3% Wednesday, cutting about $2 billion from its market cap, bringing it below $60 billion, about $10 billion below its valuation at the end of its first trading day in May.Uber reported a net loss of $5.24 billion in its second quarter of 2019, blaming stock based compensation. But even excluding the compensation, Uber’s losses amounted to about $1.3 billion, about 30% worse than the previous quarter. The company reported revenue of $3.17 billion for the quarter, missing analyst estimates of $3.36 billion, according to Refinitiv.Analysts had already expressed skepticism over Uber’s high valuation leading up to its IPO. The company reported an adjusted EBITDA loss of $1.85 billion in 2018 and showed slowing revenue growth in its S-1 filing, but Uber reportedly sought a valuation as high as $120 billion as it mulled its public debut. Ultimately, the stock listed its shares at a nondiluted valuation of $75.46 billion.While CEO Dara Khosrowshahi characterized the second quarter loss as a « once-in-a-lifetime » hit in an interview with CNBC’s David Faber and Jim Cramer on Friday, investors are still uncertain of Uber’s path to profitibility.On Monday, shortly before Uber shares hit their then-lowest closing price of $37, early investor Bradley Tusk told CNBC the company needs to dominate in more businesses than its ride-hailing and delivery services to reach profitability. « They’ve got to be that A-to-Z for transportation, » Tusk said. « Whether you’re getting yourself to A-to-B on a bike, scooter, or a car, bus, whether furniture being shipped on a truck, or a burrito from a messenger, they’ve got to be the default for all of that. »-CNBC’s Annie Palmer contributed to this report.Subscribe to CNBC on YouTube.WATCH: Why Uber is losing money and what it will take to become profitable

Source: CNBC

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