Investors are taking bets on big name IPOs of 2020 again
DoorDash, the food delivery company, jumped 22% last Friday after raising its 2021 earnings and order forecast.
What’s the big deal? Big-name IPOs like DoorDash ($DASH), Airbnb ($ABNB) and Snowflake ($SNOW) are all below their IPO price of last year.
But aside from their poor 2021 performance, they’re showing signs their stock prices may have fallen enough to look attractive:
- Airbnb, the travel bookings platform, reported better-than-expected earnings on Friday with bookings continuing to recover.
- Snowflake, the cloud data storage company, popped 13% since last Friday with an upgraded rating from Goldman who sees $SNOW as being well-positioned for the “shift of data and analytics to the cloud”.
The Joe’s Take: A great company isn’t always a good investment — price matters. And a falling stock doesn’t imply a bad company either. At one point, even an expensive stock becomes cheap if it falls low enough.