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DoorDash falls 9% after its stock price nearly doubles in first day of trading

Ben Winck   

DoorDash falls 9% after its stock price nearly doubles in first day of trading
Stock Market2 min read
  • DoorDash slid as much as 8.8% on Thursday as investors secured gains from the stock's post-IPO pop.
  • The food-delivery company surged 86% above its offering price on Wednesday as trading of its shares kicked off.
  • While shares touched an intraday high of $195.50 in the firm's trading debut, Thursday's selling dragged the stock price below its Wednesday opening level of $182.
  • DoorDash raised $3.4 billion by selling shares at $102 each.
  • Watch DoorDash trade live here.

DoorDash fell as much as 8.8% on Thursday, paring some of the massive gains seen in its first day of public trading.

The food-delivery company leaped 86% above its initial-public-offering price after the stock made its debut on the New York Stock Exchange on Wednesday. DoorDash raised $3.4 billion by selling shares at $102 each. The stock opened at $182 Wednesday afternoon and reached an intraday high of $195.50.

Shares slid below their Wednesday opening level before markets opened on Thursday, signaling investors who took in hefty profits from the IPO pop moved quickly to lock in gains.

Read more: Deutsche Bank says you should own these 14 stocks set to be post-pandemic winners - including one that could rally by 67%

Even with the company's mild Thursday drop, DoorDash still boasts a market cap of roughly $52 billion. That handily exceeds the $15 billion valuation it achieved in the private market earlier this year.

Some of the market's bullishness was linked to the firm's outperformance throughout the coronavirus pandemic. DoorDash's third-quarter revenue grew 268% from the year-ago period as Americans increasingly moved to delivery services over eating out.

The company's post-IPO rally sets the stage for similar pops for upcoming debuts. Airbnb is set to begin trading on Thursday after raising $3.5 billion in its own offering. The company priced shares at $68 each, above the $56 to $60 range it forecasted on Monday.

ContextLogic - the parent company of Wish - and gaming platform Roblox are also slated to go public before the end of the year.

DoorDash traded at $176.25 as of 10:45 am ET on Thursday.

Now read more markets coverage from Markets Insider and Business Insider:

'Not only overvalued, but dramatically so': Tesla stock should be avoided ahead of the automaker's S&P 500 inclusion, JPMorgan says

Legendary investor Jeremy Grantham made an accidental $265 million profit on a SPAC deal after previously criticizing blank-check companies

Cathie Wood is beating 99% of fund managers this year. The ARK CEO and her team share their outlooks for 2021 - including thoughts on Tesla's $5 billion stock sale, the Salesforce-Slack tie-up, and bitcoin's meteoric rise.

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