MarketsMay 17, 2021
Investors are taking bets on big name IPOs of 2020 again
Tech Valuation
Victor Lei
DoorDash, the food delivery company, jumped 22% last Friday after raising its 2021 earnings and order forecast.
What’s the big deal? Big-name IPOs like DoorDash, Airbnb and Snowflake are all below their IPO price of last year.
But aside from their poor 2021 performance, they’re showing signs their stock prices may have fallen enough to look attractive:
- Airbnb, the travel bookings platform, reported better-than-expected earnings on Friday with bookings continuing to recover.
- Snowflake, the cloud data storage company, popped 13% since last Friday with an upgraded rating from Goldman who sees as being well-positioned for the “shift of data and analytics to the cloud”.
The Joe’s Take: A great company isn’t always a good investment — price matters. And a falling stock doesn’t imply a bad company either. At one point, even an expensive stock becomes cheap if it falls low enough.
