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DoorDash Is Expected to Price IPO at Around $102 a Share at $39B Valuation

wsj.com

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Re: DoorDash Is Expected to Price IPO at Around $102 a Share at $39B Valuation

#11

Post by mypalmike »

kylebenzle wrote: post #2

Everyday I keep expecting the bottom to drop out of these money losing companies. Etsy, Uber, even Tesla. What ever happened to the value proposition of investing? When did having a value producing product fall by the wayside? Its been the better part of 10 years, since QE1, that I've been proselytizing the end of nonsense P/E ratios but the train keeps chugging. I guess when the dollar itself has a nonsense valuatio…

Your thesis isn't wrong (the market will return to value at some point) but your supporting arguments are. Apple in particular is as far from vaporware as it gets. And on the other side, Boeing's product situation is pretty dire.

Re: DoorDash Is Expected to Price IPO at Around $102 a Share at $39B Valuation

#13

Post by dalbasal »

$40bn valuation for $1bn in revenue & neutral profits. Growing about 40% per year. Obviously there is risk here, so the investment targets needs to account for it. It's a physical, price sensitive business, so profit margins won't be like FAANG-like.

So, in order to be successful (to IPO investors), doordash needs another 25X growth in 5 years... ish. I'm probably missing something.

(sheesh, asset prices are super-high atm... moving on)

Strategically, there's definitely something to delivery. It's prone to natural oligopolies. Delivery is also, at this point, the critical infrastructure retail generally... not just food. Same day delivery is a game changer for ecommerce, so owning that network does actually have the kind of potential needed for this kind of growth.

That said... the big worry is getting stuck with a similar issue to uber. The market may not bear many doordashes, but it will bear a few. Local competitors can play. Doordash might have their margins squeezed. It's certainly not a guaranteed success.

Re: DoorDash Is Expected to Price IPO at Around $102 a Share at $39B Valuation

#17

Post by 4354362626 »

kylebenzle wrote: post #2

Everyday I keep expecting the bottom to drop out of these money losing companies. Etsy, Uber, even Tesla. What ever happened to the value proposition of investing? When did having a value producing product fall by the wayside? Its been the better part of 10 years, since QE1, that I've been proselytizing the end of nonsense P/E ratios but the train keeps chugging. I guess when the dollar itself has a nonsense valuatio…

Etsy isn't money losing.

Re: DoorDash Is Expected to Price IPO at Around $102 a Share at $39B Valuation

#18

Post by skinnymuch »

kylebenzle wrote: post #2

Everyday I keep expecting the bottom to drop out of these money losing companies. Etsy, Uber, even Tesla. What ever happened to the value proposition of investing? When did having a value producing product fall by the wayside? Its been the better part of 10 years, since QE1, that I've been proselytizing the end of nonsense P/E ratios but the train keeps chugging. I guess when the dollar itself has a nonsense valuatio…

Etsy makes solid profits. You’re just on a bender. Not even thinking some companies actually do make money now. And others will at some point.
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