Here's Why I Won't Buy DoorDash's IPO

What is the market thinking? The raucous cheers that greeted DoorDash's (NYSE: DASH) initial public offering on Wednesday -- sending shares 80% from an already elevated offering price -- are absurd.

Sure, the coronavirus pandemic has created a boom for third-party delivery services, but even CNBC's Jim Cramer thinks it's more a case of "rabid money" scooping up tech IPOs than any demand based on the fundamentals of the business.

Because the basis for the market's valuation of DoorDash is so messed up, I wouldn't come near its stock with the cliched 10-foot pole.

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Source Fool.com