![]() ![]() Ritter echoed similar thoughts, saying the big question is how much is each repeat customer worth in the long run. They have their work cut out for them to grow into this valuation." "They have already penetrated a significant fraction of their target market here in the US, and new customer acquisitions were falling before the pandemic hit, so a lot of their value from here will be driven off of extracting more value from its existing active customer base. Even before the pandemic hit, customers who stay with the firm tend to place more and more orders over time," Daniel McCarthy, assistant professor of marketing at Emory University, told Market Intelligence.ĭoorDash's current valuation is already pricing in a lot of continued growth, McCarthy said in email. "DoorDash has been growing at an exceptional rate for many years, doubling or tripling every year for at least the past five years, in large part due to exceptional repeat buying. Even with those challenges, the company's shares will likely be attractive, experts said. But the company has yet to post an annual profit and will continue to face issues including a growing push to classify its largely contractor-based workforce as regular employees. At the top end, DoorDash could fetch $3.14 billion in the offering, giving it a valuation of about $30 billion, according to CNBC.Įxperts said DoorDash's growth has skyrocketed in recent months, fueled by people ordering more food as coronavirus restrictions keep them stuck at home. ![]() The company would raise $2.96 billion at the midpoint of the new target range. DoorDash increasing its IPO price range indicates that there is strong demand from institutional investors who have bought into the story that with a growing market share, DoorDash will be able to dominate the delivery business, Jay Ritter, finance professor at the University of Florida, said in an interview. ![]() 4 raised the expected price range for its IPO to between $90 per share and $95 per share from its previous range of $75 per share to $85 per share. is poised for growth but must also navigate challenges of profitability and regulatory issues, experts said ahead of the food delivery company's public trading debut.ĭoorDash is offering 33 million shares. ![]()
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