Record IPO & SPAC Bubble Fattened by Ridiculous DoorDash IPO. Airbnb Next.

by Wolf Richter
Wolf Street

Startup investors making hay while the sun shines. Public in blindly exuberant feeding frenzy. But the IPO ETF is down 3.0% today, on too much hot air?

Food-delivery outfit DoorDash sold 33 million shares to institutional investors yesterday for $102 each, raising $3.37 billion, for an initial market value of $38 billion. Shares [DASH] started trading mid-day today, went on to around $190, for an initial pop of 86%, giving it briefly a ridiculous market value of $70 billion, before backing off. In 2018, the company had a “valuation” of $1.4 billion.

But this was only the third-largest public listing this year, behind Bill Ackman’s $4 billion SPAC (special-purpose acquisition company), a blank-check outfit that will attempt to buy something later, and Snowflake’s $3.86 billion IPO.

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