Uber Technologies (NYSE:UBER) stock is falling on Thursday as the drama surrounding rival ride-hailing service DiDi Global (NYSE:DIDI) continues.
DiDi is a ride-hailing service based out of China that made its debut last month via an initial public offering (IPO). However, the stock has continued to fall since then as China has been cracking down on companies with stricter regulations.
This spurred on rumors that DiDi was planning to go private in response to those regulations only shortly after making its public debut. However, the company has denied these reports and says it’s cooperating with the Chinese government.
So why is this dropping UBER stock today? It all has to do with SoftBank (OTCMKTS:SFTBY).
SoftBank, a Japanese investment company, holds positions in both DIDI and UBER. With the falling price of DIDI stock, the investment firm is reportedly planning to sell shares of UBER stock to cover its losses.
And it isn’t just a small amount of UBER stock, either. The reports claim that Softbank will be unloading $2 billion worth, or 45 million shares, of UBER stock to cover the DIDI losses. That’s massive as it represents one-third of the company’s stake in Uber.
In light of today’s news, UBER stock is seeing incredibly heavy trading. As of this writing, more than 32 million shares of the stock have changed hands. That’s a major jump compared to the stock’s daily average trading volume of about 20.8 million shares.
UBER stock was down 2.9% and DIDI stock was up 10.6% as of Thursday morning.
Investors that want to learn more about the stock market today will want to keep scrolling.
There’s loads of stock market news worth looking into today and InvestorPlace has it all on one package. Some stories to consider for Thursday include the fraud charges hurting Nikola (NASDAQ:NKLA) stock, Tesla (NASDAQ:TSLA) planning an AI Day, as well as what to know about the Robinhood (NASDAQ:HOOD) IPO. You can get up to speed on these topics at the links below!
More Stock Market News for Thursday
- NKLA Stock: The Fraud Charges Making a Dent in Nikola Shares Today
- Tesla AI Day: 15 Things to Know About the Upcoming Aug. 19 Event
- Should You Buy the Robinhood IPO or Not? 5 Experts Weigh In on HOOD Stock
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
