{"id":128932,"date":"2020-12-08T21:35:38","date_gmt":"2020-12-08T18:35:38","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/airbnb-doordash-lead-unicorn-parade-ending-hot-ipo-year\/"},"modified":"2020-12-08T21:35:38","modified_gmt":"2020-12-08T18:35:38","slug":"airbnb-doordash-lead-unicorn-parade-ending-hot-ipo-year","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/airbnb-doordash-lead-unicorn-parade-ending-hot-ipo-year\/","title":{"rendered":"#Airbnb, DoorDash lead ‘unicorn parade’ ending hot IPO year"},"content":{"rendered":"

“#Airbnb, DoorDash lead ‘unicorn parade’ ending hot IPO year<\/strong>”<\/p>\n

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\"DoorDash
\n DoorDash is capitalizing on a pandemic-induced surge in its meal delivery business to list its shares on Wall Street at a lofty valuation in the tens of billions
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Airbnb and DoorDash make their stock market debut this week as part of a “unicorn parade” capp<\/a>ing a busy year for hot startups going public.<\/p>\n

The startups known as unicorns\u2014valued in the billions\u2014are poised to take advantage of a market hungry for young businesses promising fast growth, with some taking advantage of lifestyle changes due to the pandemic.<\/p>\n

This week’s big initial public offerings (IPOs) include food-delivery service DoorDash, which has seen a surge during Covid-19 restrictions, to be followed by home-sharing platform Airbnb and e-commerce operation Wish.<\/p>\n

Firms going public with lofty valuations, some in the tens of billions, have been concentrated in technology<\/a>, such as big data analytics group Palantir and cloud storage firm Snowflake earlier this year.<\/p>\n

There have been 420 initial public offerings (IPOs) on US markets so far this year, some 88 percent more that at this point a year earlier, according to StockAnalysis.com.<\/p>\n

Companies have raised some $144.8 billion overall going public in US markets this year, the most by far in the past 25 years, according to Dealogic.<\/p>\n

“You are seeing some of the strongest tech companies of the last five to seven years come public, like Palantir,” Wedbush analyst Dan Ives told AFP. “It has definitely been a strong year for IPOs.”<\/p>\n

Appetite is particularly strong for “secular growth stories” in sectors such as e-commerce, cybersecurity, and cloud computing, Ives noted.<\/p>\n

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\"Home
\n Home rental platform Airbnb, set to hit Wall Street with a high valuation, has fared better than most of its travel<\/a> industry rivals during the pandemic
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Growth opportunities<\/b><\/p>\n

Startups are tapping into a prime time to raise money in the public market while their business models look promising and the market is eager for opportunities, according to analysts.<\/p>\n

“It is a case of striking while the iron is hot, because there is going to be a market correction,” said analyst Rob Enderle of Enderle group.<\/p>\n

“You want to do an IPO and get your money before that happens.”<\/p>\n

DoorDash could see a valuation of some $35 billion with its listing, up from $16 billion in a private funding round in June.
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Renaissance Capital said of the DoorDash IPO that the “December unicorn IPO parade begins.”<\/p>\n

Delivery of meals and groceries has boomed during the pandemic, with restaurants offering no or limited dine-in options and people fearful of exposure to Covid-19.<\/p>\n

San Francisco-based DoorDash, which competes with GrubHub and Uber Eats, operates a leading online platform connecting people ordering food with those willing to deliver it.<\/p>\n

Some analysts are skeptical of the latest round of IPOs at current valuations.<\/p>\n

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\"With
\n With more people relying on their smartphones for goods and services during the pandemic, emerging companies catering to those demands have seen their valuations surge
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Investment research firm New Constructs chief executive David Trainer warned investors about the DoorDash market debut, branding it “ridiculous.”<\/p>\n

Trainer argued that the DoorDash offering “holds no value… beyond bailing out private investors before unsuspecting public investors realize the business is not viable in its current form.”<\/p>\n

Travel rebound?<\/b><\/p>\n

Airbnb, on the other had, which has seen its business crushed along with the rest of the travel industry, promises to be a better bet once people around the world return to vacationing and adventures, according to New Constructs.<\/p>\n

The research firm said Airbnb “has a plausible path to profitability and growth” if it can contain costs while expanding its global footprint.<\/p>\n

The vacation rental platform, expected to hit the market Thursday, has fared better than travel industry peers with its home-sharing platform offering more appeal during the pandemic.<\/p>\n

A key question is whether these emerging firms represent the future or are just a flash in the pan. A strong stock market could bring out more IPOs including from the online financial groups such as Robinhood and SoFi.<\/p>\n

Some analysts say the pandemic has distorted the economy and that it’s too soon to know how these emerging firms will fare.<\/p>\n

“How long will the party last? No one knows,” said Charlie Bilello of Compound Advisors in a research note, adding that “IPO fever (is) as hot as it’s been since 1999-2000.”<\/p>\n

“While there are certainly parallels to manias of the past, 2020 has taught us once again that every time is different,” he noted.\n <\/p>\n\n

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Airbnb to increase IPO price: report\n <\/p><\/div>\n

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\n \u00a9 2020 AFP<\/p>\n

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Citation<\/strong>:
\n Airbnb, DoorDash lead ‘unicorn parade’ ending hot IPO year (2020, December 8)
\n retrieved 8 December 2020
\n from https:\/\/techxplore.com\/news<\/a>\/2020-12-airbnb-doordash-unicorn-parade-hot.html<\/p>\n

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