Like a speedy delivery from your favorite restaurant, DoorDash (NYSE: DASH) came in a little hot in Wednesday's market debut. The leading food-delivery platform priced its IPO at $102, but that didn't stop hungry investors from bidding the shares even higher on its first day of trading.
DoorDash opened at $182, fetching as much as $195.50 before closing at $189.51. A beefy price doesn't mean much without context. There were 317.7 million shares outstanding after the offering, but this doesn't mean that you can multiply the share count by the stock price to arrive at a market cap just above $60 billion and leave it at that.
There are a lot of restricted stock units and stock options at microscopic exercise price points -- representing an additional 68.7 million shares -- that aren't technically included in the 317.7 million shares outstanding. There are also another 39.7 million shares reserved for future issuance under its equity compensation plans. So we're looking at first-day close for a company worth $73.2 billion on a diluted basis now and more than $80 billion if we look ahead to how the current equity compensation plans play out.
Source Fool.com