The 3 Biggest Risks for DoorDash's Upcoming IPO
DoorDash, the largest food delivery player in the U.S., will price its IPO on Tuesday, Dec. 8, and start trading on the New York Stock Exchange the following day. It plans to raise up to $2.8 billion by selling 33 million shares, which would give it an initial valuation of up to $32 billion -- roughly double its private valuation of $16 billion in June, and about five times higher than Grubhub's (NYSE: GRUB) current enterprise value of about $6.5 billion.
DoorDash's revenue rose 204% year over year to $885 million in 2019, and surged another 226% to $1.92 billion in the first nine months of 2020 as the pandemic boosted demand for online deliveries. Its total number of orders rose 219% year over year in 2019 and grew another 200% in the first nine months of 2020.
Image source: DoorDash.
Source Fool.com
