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Doordash = $39 Billion?

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Darts

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Jan 15, 2017
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"DoorDash, the country's largest food delivery company, said on Tuesday it would price its shares at $102 each, raising roughly $3.4 billion in its initial public offering and valuing the company at around $39 billion.16 hours ago"

Please tell me the $39 billion is a typo. A company with a bunch of cyclists is worth $39 billion?
 
D

Darts

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hoorawr said:
It’s the dot com bubble all over again
Click to expand...
You beat me to it. I was going to mention a son of a friend went to work for one of the .com companies back in the day. He was paid a small cash amount so he wouldn't starve and the rest in stock. However, the stock were in escrow for 3 years. During those 3 escrow years the stock rose so high he was a paper millionaire but they were worth almost zero by the time they were released from escrow.
 
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wazup

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Covid has falsely raised the delivery services value imo. When things get back to normal or close to it people will be ordering in less I believe.
 
D

Darts

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Jan 15, 2017
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wazup said:
Covid has falsely raised the delivery services value imo. When things get back to normal or close to it people will be ordering in less I believe.
Click to expand...
Short the stock now!
 
M

Mr.Know-It-All

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Jul 26, 2020
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Darts said:
You beat me to it. I was going to mention a son of a friend went to work for one of the .com companies back in the day. He was paid a small cash amount so he wouldn't starve and the rest in stock. However, the stock were in escrow for 3 years. During those 3 escrow years the stock rose so high he was a paper millionaire but they were worth almost zero by the time they were released from escrow.
Click to expand...
This second dot com boom has lasted a lot longer that the first one. Many platforms such as Uber, that have failed to turn a profit have had enormous valuations for years.
 
D

Darts

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Mr.Know-It-All said:
This second dot com boom has lasted a lot longer that the first one. Many platforms such as Uber, that have failed to turn a profit have had enormous valuations for years.
Click to expand...
Tesla stock has really rocketed upward (no pun intended). Is Amber Heard still his girlfriend?

Next,
finance.yahoo.com

The Airbnb IPO: Should You Buy ABNB?

Airbnb's offering is here. Here's what you need to know, including the Airbnb IPO pricing, bullish drivers for ABNB shares, and potential hurdles.
finance.yahoo.com finance.yahoo.com
 
C

Ceiling Cat

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The banks pay so little interest that there is no other place for the money to go. People are putting their retirement money into these worthless businesses.
 
B

bigdickdean

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May 25, 2017
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wazup said:
Covid has falsely raised the delivery services value imo. When things get back to normal or close to it people will be ordering in less I believe.
Click to expand...
When things get back to normal, people will be so tired of being couped up at home they will flock to restaurants to eat out (providing they can financially of course). Ordering in will be a thing of the past.
 
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RichardG2020

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I think the valuation is too high. I wouldn’t buy now, because the demand has been inflated due to COVID.

And there is a growing backlash (from restaurants, consumers, and government) towards the exorbitant commissions that restaurants have to pay to these food delivery companies.

I eventually see these commissions getting reduced either through competition and/or legislation. And when that happens, the profits will erode.

In its filing to the SEC, it was revealed that DoorDash has not had a full year of profitability since it’s launch 7 years ago.
 
D

Darts

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AirBNB is now valued more than than companies that actually own brick, mortar and land? Does that mean it is worth more than 50 First Canadian Places?
 
E

explorerzip

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One of the investors in Doordash is Softbank Group and has a history of these investments. They were one of the investors in WeWork, which is a shared office space company. That business model is effectively dead now. That company's IPO failed and Softbank lost almost $5 billion.

It seems to me that they like to bet big on businesses that have little to no competitive advantage.

markets.businessinsider.com

SoftBank's $10 billion gain on the DoorDash IPO will offset the fund's WeWork 'disaster,' says a stock analyst

"Suddenly Masa goes from losing to being hero very quickly," David Gibson of Astris Advisory Japan told CNBC.
markets.businessinsider.com markets.businessinsider.com
 
D

Darts

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I don't actually have the IPO prospectus but some, maybe all, employees did get some stock options and/or restricted shares. Just not sure if it filtered down to the cyclists.

"which includes employee stock options and restricted stock units as detailed in its filings."
www.bloomberg.com

DoorDash Hits $38 Billion Valuation in Above-Range IPO

DoorDash Inc. raised $3.37 billion in an initial public offering above its marketed range, kicking into high gear a year-end IPO surge of consumer-oriented companies that successfully navigated the coronavirus pandemic.
www.bloomberg.com www.bloomberg.com

Years ago I worked on some IPO's as chief bag carrier and it was very common for the IPO company to give some shares to valued employees. Usually, these shares were held in escrow for months/years. We got around that by doing "forward sales" (not sure if that still works to-day).
 
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