DoorDash soars 85% in Wall Street debut | Calamatta Cuschieri

Market summary

The Maltese market closed in the red on Wednesday, with the MSE total index ending the session 0.142% lower to 8,451.278 points. The best performer was MaltaPost plc, by adding 4.55% to close at 1.15, followed by 4.46% increase of Medserv plc with a closing price of 0.585. Trident Estates plc was up 2.65% to 1.55, while Harvest Technology plc jump 1.38% to 1.47. The biggest fall was seen from RS2 Software plc, which slid 0.97% to close at 2.04. Followed by a 0.93% drop of Bank of Valletta plc with a closing price of 1.06.

European shares finished on a mixed note on Wednesday as investors took heart from positive Covid-19 vaccine news in the US, offset by uncertainty ahead of a key meeting between the UK Prime Minister and European Commission chief, Ursula von der Leyen, to thrash out a Brexit deal. The pan-European Stoxx 600 index rose 0.32% to 394.9 with the German Dax 0.47% stronger at 13,340.26, although the FTSE Mibtel dipped 0.38% to 21,969.59.

US stocks ended the day markedly lower Wednesday after rallying at the open to reach record intraday highs. Investors are still waiting for news of more stimulus from Washington. The Dow fell 0.4% to 30,068.81, The S&P 500 slipped 0.8% to 3,672.82 and the Nasdaq Composite was down 1.9% to 12,338.95.

DoorDash soars 85% in Wall Street debut

DoorDash's stock soared 85% above its IPO price in its Wall Street debut Wednesday, marking the culmination of a year that has seen delivery companies benefit greatly from skyrocketing demand for their services during the pandemic.

DoorDash opened at $182 per share, valuing the company at around $70 billion, or almost as much as FedEx. The company had priced its stock at $102 per share late Tuesday, up from its original proposed price range of $75 to $85. DoorDash shares finished the day at nearly $190.

The company, which was launched seven years ago by a group of Stanford students to help businesses in Palo Alto offer delivery, has become a lifeline for many restaurants and merchants across the country. Now, the country's biggest food delivery app is riding the wave of pandemic-fuelled demand to Wall Street.

It is the first of two highly-anticipated IPOs this week for the on-demand economy, with Airbnb expected to go public on Thursday. Both companies are moving forward with their public offerings as the first coronavirus vaccines are expected to be made available to some in the United States and abroad. Unlike Airbnb, DoorDash's business has soared in recent months, but it remains an open question whether it can sustain its gains beyond the pandemic.

 

This article was issued by Nadiia Grech, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

More in Business Comment