Morgan Stanley CEO says Uber investors need to be patient

James Gorman, chief executive officer of Morgan Stanley, speaks during a Bloomberg Television interview on day three of the World Economic Forum (WEF) in Davos, Switzerland, on Thursday, Jan. 24, 2019. Photographer: Simon Dawson/Bloomberg

James Gorman said that investors upset about Uber Technologies Inc.’s stock slide should take a longer view.

“You should buy into IPOs to hold them, because you believe in the company,” Morgan Stanley’s chief executive officer told reporters after the firm’s annual shareholders meeting Thursday. “I’m not going to predict the future of the stock, but yeah, Uber’s a great company.”

Gorman’s bank has faced blame as lead underwriter after Uber plunged following its widely anticipated initial public offering earlier this month. Uber tumbled 18% in its first two days of trading amid an abrupt flareup in U.S.-China trade negotiations that drove global markets down and the recent dismal performance of rival Lyft Inc. Uber shares are still down about 10% from the IPO price.

“That came to market during a very difficult week,” said Gorman. “You do your best to find price transparency” after thousands of hours of talking to investors, he said.

Gorman has been in this spot before. In 2012, his bank faced questions after Facebook Inc. had its own post-IPO slump, prompting Gorman to predict the technology company would be back to its $38 offering price within 12 months.

“I went on TV and said within a year it will be back to flat,” Gorman said. “And it took a little longer, it took about 15 months, and now it’s $180-something.”

Bloomberg

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.