THE NEUTRAL ZONE
DoorDash raised nearly $3.4 billion after selling 33 million shares Tuesday ahead of its initial public offering.
DoorDash priced its shares at $102 each Wednesday, higher than the company’s most recent target price of $90-$95 a share. The stock opened at $182 apiece Wednesday, 78% higher than the IPO. The food delivery app’s IPO is the third-largest U.S. listing by money raised this year behind blank-check company Pershing Square Tontine Holdings Ltd. and software maker Snowflake Inc.
The pricing pushed DoorDash’s valuation to almost $39 billion, a $24 billion increase from early in 2020. Wednesday’s valuation makes DoorDash the biggest individual public food delivery firm in the U.S. The company lost $149 million in the first nine months of 2020 despite earning $1.9 billion in revenue thanks to increased delivery demand amid the pandemic.
This section includes an aggregation of articles showing different viewpoints on the topic.
Welcome, DoorDash and Airbnb, the $80 Billion Duo – Bloomberg – 12/9/2020
The market for technology initial public offerings continues to sizzle. This month is on track to set an all-time record for money raised through U.S. IPOs, capping off what’s already been a record year, with companies attracting $156 billion from investors, according to data compiled Bloomberg. This week brings an IPO one-two punch: First, there’s food-delivery leader DoorDash Inc., which priced Tuesday night at $102 a share, above an already-increased price range.
DoorDash’s New Valuation Is Even More Ridiculous – Forbes – 12/8/2020
The latest IPO price range ($90-$95) values DoorDash (DASH) at ~$29.4 billion, the midpoint of its new range and up from $25.4 billion, the midpoint of its prior price range. The increased valuation likely indicates strong demand for shares and is well above the firm’s last private valuation of $16 billion. I still think this proposed public equity offering holds no value, $0, beyond bailing out private investors before unsuspecting public investors realize the business is not viable in its current form.
DoorDash investors are fearful of getting Snowflaked – Quartz – 12/9/2020
Even by 2020 standards, Snowflake’s initial public offering was bonkers—the cloud-computing company’s shares more than doubled in price during the first day of trading. Upstarts like DoorDash, the largest US food delivery company, are beneficiaries of that meteoric offering, as Snowflake’s success has created a flurry of demand for shares of pre-IPO companies. “Snowflake is becoming a verb, as in, ‘I don’t want to be Snowflaked,’ meaning I don’t want to be left out,” said Greg Martin, founding partner of Liquid Stock, which provides financing for shares of pre-IPO companies and tracks private-stock prices. “It comes up in almost every conversation.”
DoorDash IPO will make its CEO a billionaire — here’s how his immigrant parents inspired his success – CNBC – 12/9/2020
For CEO and co-founder Tony Xu, that lucrative public offering would make him a billionaire at just 36 years old. […] At a valuation of more than $30 billion for DoorDash after the IPO, Xu’s stake would be worth roughly $1.6 billion. Billionaire status would cap a meteoric rise to tech success and stardom for Xu, who is the son of Chinese immigrants who moved to the U.S. from Nanjing in 1989, when Xu was just 5 years old.
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