This Week in Startups E1151: Tech stock deep dive with Alex Wilhelm & Beth Kindig: Airbnb & DoorDash IPOs, Zoom’s pricing power, post-pandemic outlook, top picks & more
Dec 11, 2020
Alex Wilhelm, Senior Editor at TechCrunch, and Beth Kindig, tech stock analyst, dive deep into the world of IPOs with insights on DoorDash and Airbnb. They unpack the cultural shifts of going public and discuss the valuation challenges these companies face. The conversation shifts to video conferencing giants like Zoom, exploring market dynamics and pricing strategies. They delve into subscription services and the gig economy, examining how consumer behavior is reshaping investment opportunities amidst geopolitical influences.
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IPO Performance
- Both DoorDash and Airbnb saw their IPOs double upon release, exceeding expectations.
- This indicates significant demand, but also raises concerns about overvaluation.
Retail Investor Influence
- Retail investors' familiarity with DoorDash and Airbnb likely contributed to the high demand.
- This "buy what you know" approach, amplified by platforms like Robinhood, may create short-term imbalances.
Valuation Concerns
- DoorDash and Airbnb's high valuations raise concerns given their revenue multiples compared to SaaS companies.
- Their lack of comparable gross margins and revenue predictability justifies this concern.