There’s an unquenchable investor thirst for risk and return in this market – and it’s evident in the fourth quarter’s IPO activity.
Since October 1, more than 70 companies went public.
The list ranges from smaller, unknown companies like healthcare name Seer Inc. (Nasdaq:SEER) and financial group HF Enterprises Inc. (Nasdaq:HFEN) all the way to bigger, more familiar names like tech companies McAfee Corp. (Nasdaq: MCFE) and PubMatic Inc. (Nasdaq: PUBM).
But one of the most-talked-about IPOs was that of food delivery company DoorDash Inc. (NYSE: DASH).
And if I’m being honest, this is the one that also confused me the most.
During a pandemic, it makes sense that a food delivery service could and probably would fare well. But actually, I think that’s where things went wrong.
Traders ran into the proverbial fire as soon as DASH shares started trading, boosting the share price to $195. From there, the stock hung – if for only a moment – like Wile E. Coyote just after he runs off the edge of a cliff.
Today, DASH has lost more than 25% as it continues to form a short-term bearish trend.
With one of the newest names on Wall Street’s block hitting a low, one has to wonder – is it worth a buy?