DoorDash Is Expected to Price IPO at Around $102 a Share at $39B Valuation | Hacker News Reader

DoorDash Is Expected to Price IPO at Around $102 a Share at $39B Valuation

wsj.com

22 pointstempsy15 comments

$40bn valuation for $1bn in revenue & neutral profits. Growing about 40% per year. Obviously there is risk here, so the investment targets needs to account for it. It's a physical, price sensitive business, so profit margins won't be like FAANG-like.

So, in order to be successful (to IPO investors), doordash needs another 25X growth in 5 years... ish. I'm probably missing something.

(sheesh, asset prices are super-high atm... moving on)

Strategically, there's definitely something to delivery. It's prone to natural oligopolies. Delivery is also, at this point, the critical infrastructure retail generally... not just food. Same day delivery is a game changer for ecommerce, so owning that network does actually have the kind of potential needed for this kind of growth.

That said... the big worry is getting stuck with a similar issue to uber. The market may not bear many doordashes, but it will bear a few. Local competitors can play. Doordash might have their margins squeezed. It's certainly not a guaranteed success.

By the time the share arrives you will have spent $135

Grubhub has a market cap of 6.2B. So doordash is pricing it at 6.2^2. Is this just coincidence? Is doordash bigger than grubhub?

The fleecing of your 401k...

Everyday I keep expecting the bottom to drop out of these money losing companies. Etsy, Uber, even Tesla. What ever happened to the value proposition of investing? When did having a value producing product fall by the wayside?

Its been the better part of 10 years, since QE1, that I've been proselytizing the end of nonsense P/E ratios but the train keeps chugging.

I guess when the dollar itself has a nonsense valuation its no surprise that vaporware companies like Apple, Google and Tesla can out-compete "real" companies like Berkshire Hathaway and Boeing.

I’m confused by the connotations of “vaporware” and “real” in your comment, and the implication of the P/E values you mention (besides Tesla).

Apple has much higher revenue on “real” products than Boeing.

Berkshire is a massive Apple shareholder...

And isn't it a massive holding company? What's so real about them

I am not sure if DoorDash's IPO price is more than it should be, but value creation (which is "real" in my view) need not always result in immediate profits and the stock market tends to be forward looking in general. How exactly are Apple, Google, Tesla and for that matter even Uber vaporware companies ? Some of them might be overvalued (by a large margin), but they still have real value in this world.

If pumping and dumping for the robin hood chumps is far more profitable than years of dividends, which is the real product?

Vaporware? Those companies have real products that are everywhere. Google is ubiquitous in modern life. Apple is in all the pockets or the desktops of hundreds of millions. There are more Tesla’s on the road every day. Each of these companies innovates in multiple fields and has huge reach. Having outsized p/e doesn’t say anything about the company’s products.

Boeing is propped up by government funding and has had some huge screwups lately. BH doesn’t produce anything...

Your thesis isn't wrong (the market will return to value at some point) but your supporting arguments are. Apple in particular is as far from vaporware as it gets. And on the other side, Boeing's product situation is pretty dire.

Etsy isn't money losing.

Etsy makes solid profits. You’re just on a bender. Not even thinking some companies actually do make money now. And others will at some point.

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