- DoorDash has filed to raise $2.64 billion in an IPO.
- The firm provides last-mile delivery services in the U.S., Canada and Australia.
- DASH has grown quickly due to the Covid-19 pandemic, but the IPO is pricey and I have concerns about its future growth trajectory in 2021.
- I’ll watch the IPO from the sidelines and may watch list the stock for a potentially lower entry point post-IPO.
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Quick Take
DoorDash (DASH) has filed to raise $2.64 billion from the sale of its Class A common stock in an IPO, according to an amended registration statement.
The company provides last-mile product transportation services to local retailers in the U.S., Canada and Australia.
DASH has grown sharply due to the Covid-19 pandemic but is still generating heavy losses and I’m concerned about its growth trajectory as the negative effects of the pandemic are reduced in 2021.
While I’m passing on the IPO due to excessive valuation, for investors who like the company’s approach, I suggest watchlisting the stock for a potentially lower entry point in 2021.
Company & Technology
San Francisco, California-based DoorDash was founded to enable local retailers to provide delivery capabilities via the firm’s mobile app and logistics platform.
Management is headed by co-founder and CEO Tony Xu, who was previously Vice President of Finance at Uber Technologies.
Below is a brief overview video of the DoorDash IPO by CNBC:
