Although DASH didn't quite make it to $200/share, its shares surged during its Wednesday debut, briefly sparking a rotation from the other momo heavyweights into DASH, yet another 'sharing economy' startup with lots of cash and hype, but no clear path to profitability.
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Airbnb's (ABNB) debut was marked by similarly frenzied trading: shares priced at $68 on Wednesday, giving the company a value of $47BN. But they surged to $146/share during the opening trades, a more than 115% jump, pushing the company's valuation to more than $100BN, more than 2x in the span of 12 hours.
The company is going public at a time when the sector has been hammered by the pandemic, through Airbnb has made itself available to customers looking for convenient "stay-cation" homes, where they can get away from the din of city life for a bit.
The company's revenue shrank nearly 19% last quarter to $1.34 billion vs the prior year as the pandemic killed the travel and hospitality industry. Still, the company managed to turn a profit thanks largely to customers fleeing the city.
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It just goes to show: the economy might be in tatters, but the market for IPOs - particularly the SPAC 'reverse IPOs' that have become all the rage this year - is still white-hot.
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