Uber Shares Plunged to Record Low on Thursday

Uber
  • Uber Shares Plunged to Record Low on Thursday

Uber Inc, a US ride-hailing company, was one of the multinational companies affected by the fast-spreading coronavirus as shares of the company plunged to fresh lows.

The company’s share plunged by 12.35 percent from $28.97 it traded on Wednesday to $23 on Thursday after president trump announced a ban on all flights from the Euro-area to curb coronavirus.

The S&P 500 dipped by 8.3 percent despite President Trump’s speech to calm people down. Global investors are saying until a drug is developed to combat the fast-spreading virus, the global economy will continue to suffer.

“We’re deeply concerned both by the alarming levels of spread and severity, and by the alarming levels of inaction,” WHO Director-General Dr. Tedros Adhanom Ghebreyesus said at a press conference at the organization’s headquarters in Geneva. “We have rung the alarm bell loud and clear.”

The World Health Organisation (WHO) on Wednesday declared coronavirus ‘a global pandemic,’ prompting the US and the rest of the world to start enforcing tougher measures to protect their citizen and cut losses.

Uber had said the outbreak could hurt its revenue this year given the nature of its business, however, with the new restrictions and WHO declaration, demand would plunge just as seen on Thursday with investors dumping the company stocks for haven assets.

Last week, it said: “a pandemic or an outbreak of disease or similar public health concern, such as the recent coronavirus outbreak, or fear of such an event” could post a material risk to its business.”

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya

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