Stocks

Shine’s Off IPO Darlings Airbnb, DoorDash

© Reuters.

By Christiana Sciaudone

Investing.com — Is the IPO boom sagging? Airbnb Inc (NASDAQ:)b and DoorDash Inc (NYSE:) are both falling more than 10% on Monday following their dazzling debuts last week.

The tech companies made their market premiers to a frenzy of demand that drove their stock prices to unbelievable heights, giving the companies valuations greater than peers — and sometimes, greater than several of them put together.

The fever appears to be passing, but not before it scared off other companies eyeing the markets. Over the past few days, Roblox, which makes video games, had been preparing to go public this month, and decided to delay the move until 2021, The New York Times reported. That was followed by fintech Affirm’s decision to do the same, according to The Wall Street Journal, which cited a source familiar with the situation.

Last week, DoorDash jumped about 80%, to $182 upon trading for the first time on Dec. 9 after selling 33 million shares — originally marketed between $90 and $95. The company raised $3.37 billion in its initial public offering. The company’s market cap has fallen from $60 billion to $48 billion this week.

Meanwhile, Airbnb opened at $146 on the Nasdaq, above the IPO price of $68 per share, raising $3.5 billion and giving it a market cap of over $100 billion. That has since dropped to about $74 billion. That compares to Marriott International Inc (NASDAQ:)’s $41 billion valuation.

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