Uber shares rise as quiet period ends
Uber shares are up in midday trading as its post-IPO quiet period expires and brokers overwhelmingly have rated the ride-hailing company's stock a "buy."
Shares are up close to 2% as 15 out of 19 analysts on FactSet rate the stock a buy or the equivalent, with target prices mostly in the mid-$50 range. Shares debuted on May 10 at $45 and fell about 7% that day. They've mostly hovered in the low $40 range since.
The San Francisco company has yet to turn a profit and reported more than $1 billion in losses in its first quarter as a public company, despite a 20% jump in revenue. Uber's revenue last year surged 42% to $11.3 billion, but the company acknowledges it could be years before it turns a profit.
Shares traded above $42 at midday. It's the first day that banks which underwrote Uber's IPO can comment publicly about the company.
Uber disclosed in a previous filing that the IRS is reviewing its 2013 and 2014 taxes. The company said it expects its gross amount of tax benefits to be reduced by at least $141 million in the next 12 months.
Uber also said its taxes for the years 2010 to 2019 were "open" for further review in other countries where it does business, including Brazil, the United Kingdom, Australia and India.