Uber Stock Hits New All-Time Low Due To Investor Concerns About Profitability

Uber (UBER) stock hit an all-time low Wednesday, as the ride-hailing company's shares continue to slide after the company released its poor earnings statements for the second quarter last week, showing the company lost $5.2 billion.

Uber's price of shares dipped to $33.36 -- the first time the company's stock fell below $36. By 3 p.m. ET, shares of Uber were trading at 33.94, down 6.9%.

Analysts and investors are concerned that the company may not be profitable, as it continues to research new initiatives such as Uber Air, which would weigh on profit margins. Stock compensation expenses are also a major cost for the company.

The company reportedly initiated a hiring freeze last week after the release of the poor earnings report.

Uber's competitor, Lyft (LYFT), has released financial results that indicate a more rosy outlook, as the company had better-than-expected earnings last week. Lyft is considered a more focused company than Uber, as the company limits its services to just getting rides, and is only available in North America.

The two companies both had poor performance IPOs earlier this year. Lyft started its IPO at $72 in late March, with the stock now trading around $54 dollars. Uber had its IPO on May 10, with its pricing at $45, but dropped 7.6% on its first day of trading.

Some analysts have criticized Uber's direction since its former CEO Travis Kalanick resigned in 2017, due to allegations of sexism under his leadership and his ties to President Donald Trump.

Uber CEO Dana Khosrowshahi struck back at critics that say the company has lost its "growth at all costs" mentality since Kalanick resigned.

"The founder mentality, that edge, that fire is absolutely something that we want to keep going at the company," Khosrowshahi said. "It's a big part of what made the company successful and I absolutely think that it will play a big part of making the company successful moving forward."

Uber was founded in 2009 in San Francisco. Its services are available in over 60 countries and 400 cities worldwide.