DoorDash & C3.ai IPOs: Stock Performance and Market Debut

Despite criticism, initial public offerings are experiencing significant gains.

This is the prevailing trend today as DoorDash and C3.ai, both highly-valued American technology companies, have witnessed substantial increases in their value following the commencement of trading.

DoorDash stock has increased by nearly 83% to $186.51. The company established its IPO price at $102 per share last night, exceeding its previously adjusted IPO range of $90 to $95 per share.

Currently, C3.ai shares are up an even more considerable 151% to $105.58, after being priced at $42 per share earlier today. The company had previously increased its IPO range from $31 to $34 per share to $36 to $38 per share.

It seems that public investors are demonstrating greater optimism regarding the growth potential and profitability of certain late-stage unicorns compared to private investors. For instance, DoorDash secured $400 million in funding earlier this year with a valuation of approximately $16 billion.

The company’s value today, on a non-diluted basis, is around $59 billion. This number increases considerably when accounting for shares potentially created through option exercises and other compensation methods.

TechCrunch will be interviewing DoorDash’s CFO and the CEO of C3.ai later today.

This positive development is encouraging for several companies preparing to go public. Airbnb may be able to achieve a higher price per share when it sets its price later today. Furthermore, the strong initial trading performance of today’s IPOs could benefit Affirm, Upstart, Roblox, and Wish as they finalize their IPO pricing.

The reasons behind these substantial increases are unclear, but potential contributing factors include—as mentioned earlier—a surge in retail trading and a potentially limited share float, among other elements. In any case, both companies have experienced a remarkably successful week, first securing more capital than expected and then receiving a highly favorable reception from public investors.

Determining the significance of these new valuations requires further observation. Additional trading activity and a larger volume of shares will help establish a more stable and accurate valuation for both companies.

For now, we will continue to monitor the situation through sources like Yahoo Finance.