DoorDash investors are fearful of getting Snowflaked

[Teh One Who Knocks]

By John Detrixhe, Future of finance reporter - Quartz


https://i.imgur.com/IP7TZkrl.jpg

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, founder of Liquid Stock, which provides financing for shares of pre-IPO companies and tracks private-stock prices. “It comes up in almost every conversation.”

Private-company shares are illiquid and difficult to trade, and information about those transactions can be hard to come by. Bids for shares of DoorDash surged 40% between September, when Snowflake went public, and November 2020, according to Liquid Stock data. Bids for e-commerce company Wish, which is also planning an IPO, jumped more than 50% during that span.

DoorDash is set to begin trading on the New York Stock Exchange today after pricing its IPO at around $102 per share yesterday. That’s higher than the $90 to $95 range signaled last week.

To be sure, Snowflake isn’t the only reason there’s red hot demand for private tech companies. They are rallying for the same reason their peers in the public markets are—in a world of ultra-low interest rates, investors are scouring the planet for anything with a hint of yield, and tech companies are seen as one of the few assets that offer growth. That’s driving institutions like hedge funds and sovereign wealth funds to pile into private markets.

Shares in private companies tend to take off when they file confidentially for an IPO because it lowers the liquidity risk (the concern that an investor won’t be able to easily trade the stock), and they get another boost when investors finally see the S-1 registration statement, which provides more information about the company. “There are usually two bumps” in price before the IPO, Martin said. “Unless the numbers don’t meet expectations, or investors learn something in the S-1 that doesn’t fit their narrative.”

Investors are betting the Covid-19 pandemic has accelerated the shift to digital, and that things like Zoom calls, food delivery, and electronic signatures will be the norm even after the virus is contained.

Airbnb, however, didn’t get an uplift from the outbreak, as lockdowns froze the travel industry. But by November, the home-sharing company’s private shares had made up some ground from the lows earlier this year, according to Liquid Stock. Investors were bidding around $55 for Airbnb’s secondary market shares, which are now expected to fetch between $56 and $60, according to a filing. The company’s shares are set to price today (Dec. 9) and to start trading on Nasdaq tomorrow.

The gyrations in Airbnb shares show that tech companies aren’t always immune to disruptions in the broader economy. But for now, investors are more focused on successes like Snowflake than they are on the risks. “No one wants to miss the next Snowflake—it was a seminal moment,” Martin said. “But there’s only one of them. Everyone isn’t Snowflake.”

[FBD]

My neighbor at my unc's ol cottage on Isle La Motte airbnbs the place now....they were telling us to come up there and hang out for a weekend sometime....check price, airbnb is charging like 475 a nice to stay there, fuck those airbnb people.

[PorkChopSandwiches]

AirBnB doesnt set the price, the owners do

[FBD]

AirBnB doesnt set the price, the owners do

:lol: well in that case, I'm sure Jim wouldnt rape old family friends like that....but then my question becomes, is he under any sort of contract with airbnb that he cant rent the place out outside of airbnb


sunset every day there, I miss going up there

https://i.postimg.cc/QCGkdjnw/Dscn0434.jpg

[PorkChopSandwiches]

AirBnB/VRBO just takes a percentage, I dont believe you have to have a contract long term

[DemonGeminiX]

This IPO took off.

Anybody got any lines on any others coming up?

[PorkChopSandwiches]

AirBNB on Thursday

[DemonGeminiX]

AirBNB on Thursday

Are you gonna jump in?

Here's a few more:

https://www.kiplinger.com/investing/stocks/ipos/601672/hot-upcoming-ipos-to-watch-2021

[Teh One Who Knocks]

Jessica Bursztynsky - CNBC


https://i.imgur.com/pJfjlTXl.jpg

Shares of DoorDash, a leading food delivery app, surged in its market debut on the New York Stock Exchange on Wednesday.

The company priced its shares at $102 a piece Tuesday night, above its range of $90 to $95. The stock began trading at $182 per share, giving it a market cap of $57.8 billion.

DoorDash, founded in 2013, now joins its competitors GrubHub and Uber at a key time. Food delivery has been a bright spot during the coronavirus pandemic, with people limiting their time outside of the home as much as possible.

DoorDash reported $1.9 billion in revenue for the nine months ended Sept. 30, according to its IPO filing. That's up from $587 million during the same period last year. As its revenue grew, DoorDash also narrowed its net loss to $149 million over the same period in 2020. In 2019, DoorDash had a net loss of $533 million over the nine-month period.

In its prospectus, DoorDash said more than 390,000 merchants use the app.

The company, which ranked No. 12 on the 2020 CNBC Disruptor 50 list, trades under the symbol "DASH." Goldman Sachs and J.P. Morgan are the lead underwriters for the offering, while SoftBank is the largest shareholder with about 20% stake, followed by Sequoia, which owns 16%.

Wednesday's public offering kicks off a busy season for market debuts. Airbnb is set to go public Thursday, followed by e-commerce Wish next week and fintech company Affirm and kids' video game maker Roblox this month.

DoorDash has attracted scrutiny from the attorney general of the District of Columbia on more than one occasion.

It recently reached a $2.5 million settlement with the AG's office after facing allegations that it misled consumers on how tips would be allocated to workers. DoorDash has denied the allegations but changed its tip model since the period of time the AG cited in the lawsuit.

More recently, the DC AG's office confirmed to CNBC it had sent a cease and desist letter to DoorDash on Tuesday, warning it to suspend plans to charge commission on its DashPass service that would exceed a fee cap set by the District.

The DC Council recently passed a law that would cap third-party delivery and pick-up service fees at 15% of the order price during a public health emergency. The Washington City Paper reported last week that restaurants were informed they would begin being charged the original rate in their contracts for DashPass, which is a premium service for frequent users in which restaurants pay to participate.

According to the notice reported by the City Paper, DoorDash told restaurants the legislation "is only applicable to Classic orders and does not apply to the DashPass program."

In a statement Wednesday, a DoorDash spokesperson told CNBC it had decided not to charge restaurants their contractual rates for DashPass, for the time being, citing "confusion as a result of our response to the unintended consequences of the pricing regulations in Washington, DC." They maintained DashPass is a "premium marketing offering."

"We look forward to engaging with local policymakers to increase understanding of the impact pricing regulations have, and solutions that better serve customers, Dashers, and restaurants," the spokesperson said.

[PorkChopSandwiches]

Are you gonna jump in?

Here's a few more:

https://www.kiplinger.com/investing/stocks/ipos/601672/hot-upcoming-ipos-to-watch-2021

IPOs are tough. I'll see how this DASH goes, but probably opt out of AirBNB. I'm low on cash in my accounts, and not currently looking to dump anything to get into it

[Pony]

:lol: well in that case, I'm sure Jim wouldnt rape old family friends like that....but then my question becomes, is he under any sort of contract with airbnb that he cant rent the place out outside of airbnb


sunset every day there, I miss going up there

https://i.postimg.cc/QCGkdjnw/Dscn0434.jpg

No, he can just log on and block out dates so Airbnb doesn't rent it.

[Godfather]

IPOs are tough. I'll see how this DASH goes, but probably opt out of AirBNB. I'm low on cash in my accounts, and not currently looking to dump anything to get into it

In this market every tech-ish stock is exploding. I didn't jump on DASH because $102 sounded too high. Now I feel dumb. I'll jump on AirBnB tomorrow and take the risk.

[DemonGeminiX]

In this market every tech-ish stock is exploding. I didn't jump on DASH because $102 sounded too high. Now I feel dumb. I'll jump on AirBnB tomorrow and take the risk.

Are you sure? I mean, things aren't close to going back to normal yet, and this depends on travel and tourism to be in full swing to make a profit. I'm thinking about it, and it just doesn't seem like the right time to go public and have it work out. Maybe in 6 months? I'm predicting that it'll go high for a little while, then it'll drop as the reality of the situation sets in. But I could be wrong. I'm not exactly a guru or anything. Right now, I'm just watching.

[Godfather]

Are you sure? I mean, things aren't close to going back to normal yet, and this depends on travel and tourism to be in full swing to make a profit. I'm thinking about it, and it just doesn't seem like the right time to go public and have it work out. Maybe in 6 months? I'm predicting that it'll go high for a little while, then it'll drop as the reality of the situation sets in. But I could be wrong. I'm not exactly a guru or anything. Right now, I'm just watching.

You make good points, but this is a short term play by me. Might try and get in and out within a few days as I'm strictly buying expecting it to explode on hype alone because that seems to be how the market works right now. As a company, I have the exact concerns about AirBnB that you do.

I'm setting my alarm early tomorrow to see what happens in the first little bit of market open.

[FBD]

You make good points, but this is a short term play by me. Might try and get in and out within a few days as I'm strictly buying expecting it to explode on hype alone because that seems to be how the market works right now. As a company, I have the exact concerns about AirBnB that you do.

I'm setting my alarm early tomorrow to see what happens in the first little bit of market open.

That's the way to go, find good info, get in for a short time, get out. 401s are for playing safe :dance:

[DemonGeminiX]

Airbnb's IPO was $68. It just started trading at around $150.

[PorkChopSandwiches]

opps

[DemonGeminiX]

It's around $157 now.

[PorkChopSandwiches]

It doesn't even show trading on my etrade account, weird

[Teh One Who Knocks]

Airbnb's IPO was $68. It just started trading at around $150.

And what were the odds of DayTrader Joe getting in at the IPO price before it started to go up? Ahead of all the huge firms?

[PorkChopSandwiches]

You have to apply ahead of time, I picked up Facebook that way

[DemonGeminiX]

And what were the odds of DayTrader Joe getting in at the IPO price before it started to go up? Ahead of all the huge firms?

Regular traders generally don't have access to IPOs.

[PorkChopSandwiches]

Regular traders generally don't have access to IPOs.

You can, you just have to fill out the form, and lie and say you have $250,000

[DemonGeminiX]

:lol:

[Godfather]

Regular traders generally don't have access to IPOs.


You can, you just have to fill out the form, and lie and say you have $250,000

It depends on the IPO and the trading platform. I bank with one of the big 5 in Canada and their IPO center for private investors does have some IPO's where you can make an expression of interest on certain IPOs, usually not the big sexy ones like Airbnb though. Since they didn't have Airbnb all you can do ahead of time is set an order to buy at a limit price, and watch the news to try and figure out where it will open. Somehow Airbnb went from $68 to $154 before it went live to the public.... so my limit price order with a strike of $75 obviously didn't fill. I'm fine with that. I would've had to set it at about $154 to catch it at open around 12pm my time, and it closed today at $144 so I would've lost.

[DemonGeminiX]

It depends on the IPO and the trading platform. I bank with one of the big 5 in Canada and their IPO center for private investors does have some IPO's where you can make an expression of interest on certain IPOs, usually not the big sexy ones like Airbnb though. Since they didn't have Airbnb all you can do ahead of time is set an order to buy at a limit price, and watch the news to try and figure out where it will open. Somehow Airbnb went from $68 to $154 before it went live to the public.... so my limit price order with a strike of $75 obviously didn't fill. I'm fine with that. I would've had to set it at about $154 to catch it at open around 12pm my time, and it closed today at $144 so I would've lost.

It's going to be interesting to watch how it moves over the next week.

[DemonGeminiX]

It closed lower today, down to $139.25. Yesterday's was $144.71.

Maybe I'm wrong, but I'm still saying it was too soon to go public.

Or maybe it was because it was Friday. Most everywhere I look says Fridays tend to slow down in trading.