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DoorDash blows past IPO price in stellar debut
$70 billion and counting. That’s the market value slapped on DoorDash in its opening minutes Wednesday, as the stock made one of the biggest market debuts of 2020. Shares of the food delivery startup surged to $182 a piece. That’s an 80 percent gain right out of the gate above its $102 IPO price, which priced much higher than the expected range. Hungry investors were eager to grab up shares, giving the largest third-party delivery company for restaurants a market valuation that was more than quadruple what it saw during a round of private fundraising in June. Wall Street no doubt wants to get a piece of the action in one of the many high-tech companies that have seen a boom during the health crisis. Consumers have turned to apps like DoorDash to get their favorite foods delivered to their doors as state restrictions force restaurants to limit indoor dining options. Company revenues surged to $879 million in the third quarter from just $239 million the same time last year. Profits, however, have not been consistent. DoorDash lost money last quarter after posting its first quarterly profit three months before that. But investors are betting the health crisis has changed dining habits enough to keep money flowing to DoorDash and rivals Uber Eats, GrubHub and Postmates. DoorDash’s blockbuster debut is fueling anticipation for another hot IPO, this time from home rental start-up Airbnb, which is set to begin trading on Thursday.