Tom Nash
patreon
Airbnb and DoorDash IPO - My Prediction
🕑 Added 2020-12-02 09:39:24 +0000 UTCHey Patreons, I am currently researching for my full analysis of these 2 IPOs. I want to give you Patreons an exclusive scoop before everyone else about what I see happening.
Airbnb and DoorDash IPOs are Two of the year’s most anticipated public listings — 2020 was a record year with over $140 billion raised via 383 IPOs and these 2 mid December IPOs are set push these numbers even higher.
Both companies are on track for IPOs scheduled to take place in mid-December.
AIRBNB is looking for a 33$ billion valuation, and DoorDash is looking for 28$ billion. Now here is the thing, things are so hot that both companies have just increased their target valuation by 10% right before the IPO, for no apparent reason other than how hot the stock market is right now. Not a great look, but it’s a sellers market, especially in the tech sector, so its fair game.
Similar so far, but difference is while DoorDash is on its way up and even finally hit profitability in Q2, ABNB is trending down and saw a 39% reduction in activity, mainly due to pandemic effects, but it has yet to taste the sweet taste of profitability, with or without the pandemic.
Both present a lot of opportunities, but out of these 2, I like DoorDash better and let me explain why.
DoorDash is a great company with 18 million customers and 1 million delivery. The company provides last-mile product transportation services to local retailers in the U.S., Canada and Australia, mainly food and retail deliveries. It has over 390,000 merchants.
While Airbnb is feeling the pandemic pain, and the whole travel industry is going through an existential crisis, DoorDash is corona proof. In fact its +1 corona positive. Stay at home food deliveries were huge, but now it has become the norm. They are sitting on a gold mine with an existing massive infrastructure of merchants, logistics and customers. Even after this ends, habits of working from home and staying in will not change dramatically. Covid changed the world forever, and this company is on the upside of the K recovery.
Founded in 2013, DoorDash is managed by the co-founder and CEO Tony Xu, who got an M.B.A. from Stanford. Still around. See a pattern here? The founder CEO didn’t come from money. Came to the US at 5. Father was a student and mom used to be a doctor in china but had to work 3 jobs in the US to help them survive. I respect that.
Thus, I feel like a $75 to $85 per share is a good entry point for long term hodling for DoorDash. I will release my full analysis to the public in the next 2 weeks but I am letting you know in advance so you can prepare.
Love Tom
Comments
Vladyslav
Dash at 180 now, good moment for a short maybe?
Jacopo Bertini
DoorDash IPO at $102??? Are we in a bubble?
A K
Super appreciate the feedback and analysis. How do you compare DoorDash vs its competitors like UberEats, GrubHub, Postmates. I think its already a crowded space and now state governments are trying to cap delivery fees. https://www.geekwire.com/2020/washington-governor-sets-cap-delivery-fees-uber-eats-doordash-postmates-others/
Kevin Visser
Incredible - thank you! I am wondering if anyone has any resources on where to prepare and dig deeper. I want to get better at the analysis myself and not sure which website or sources to use because of so much misinformation.
Jacopo Bertini
Super! What is instead a good entry for AIRBNB? I am planning to build a position slowly but surely. Thank you Tom. Good luck and for sure a video mentioning BNB will give you a boost! Make sure you #AIRBNBIPO or something like that
Fletcher Wiggin
Love all you do Tom thank you!
