IPO, News, Stocks

DoorDash is up 85% on the IPO day

DoorDash reported revenue of $1.9 billion for the first nine months in 2020

Written by Hivelr News · 43 sec read >
5/5 (1)

DoorDash, the food delivery app, goes public today and gains 85% on the first day of trading. The company lists the stock on the New York Stock Exchange with a target price of $102 per share. However, the stock began trading at $102 per share and closed at $189 per share, which gave a $60.2 billion market capitalization.

Tony Xu, Andy Fang, Tony Moore, and Stanley Tang founded the company in 2013. The technology platform company started with 12 employees working in a cramped house in Palo Alto, California. The IPO timing cannot be any better as its food delivery app is viral during the pandemic.

DoorDash reported revenue of $1.9 billion for the first nine months in 2020. The income was more than $500 million higher over the same period last year. The company managed to improve its net loss by 72% from $533 million to $149 million.

DoorDash becomes the newest public company to join the food delivery app segment after Grubhub and Uber. The company has a $60.2 billion valuation. The number is significantly overvalued in comparison to Grubhub’s $6 billion market capitalization and Uber of $94 billion. However, riding app has more diversification in the online taxi, freight, and grocery delivery market.

Airbnb will go public tomorrow. Will Airbnb beat the first-day return?

Please rate this

Written by Hivelr News
The official account for Hivelr Business Journal to deliver the latest curated news in business, economics, and investments. Profile

One Reply to “DoorDash is up 85% on the IPO day”

Leave a Reply