It’s possible it is a stock market bubble or a tech-inventory bubble at the least. And possibly DoorDash, Airbnb, and C3.ai and their bankers should have priced higher regardless to take advantage of all of the enthusiasm. It’s very hard to keep away from reactions like that, after DoorDash, for instance, doubled its final non-public share price to $102 for its public debut on Wednesday, only to observe the price increase to $175 at the end of the week.
Or probably none of this will subject, mainly because the future is way bigger and the companies are heading to reach there regardless. That is what Saar Gur states to Connie Loizos this week about DoorDash, which he had experienced many years ago:
“I actually started my career at Lehman Brothers on the investment banking team, and so having seen the IPO process, while I can appreciate [frustration that a] company left some money on the table based on the pricing, the tactical challenge [is that] it’s very hard to predict. You know what the market will bear once it moves to retail investors.
What’s exciting to me is [that] DoorDash is raising money because they are just getting started. I do think this could be a $500 billion-plus company. There’s so much to be excited about. As for the capital-raising event, I think it’s hard for the bankers to know where it will land with the broader market, so I’m not as negative as maybe some others.”
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