Home » Markets » Market analyst advises against buying DoorDash, calls it the ‘WeWork of 2020’
Market analyst advises against buying DoorDash, calls it the ‘WeWork of 2020’
Don’t buy DoorDash stock; it’s the WeWork of 2020: Expert
New Constructs CEO David Trainer and EquityZen co-founder Phil Haslett share their analysis ahead of DoorDash and Airbnb going public.
DoorDash stock skyrocketed in its NYSE debut Wednesday, but New Constructs CEO and market analyst David Trainer told FOX Business Network's “The Claman Countdown” investors shouldn’t waste their money.
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“DoorDash is the WeWork of 2020,” he said. “This business is unlikely to ever make money consistently. The current valuation implies they're going to have something like over 120% of the food delivery at total addressable market.
“This is just a way, honestly, for Softbank to try to recoup some of the losses from WeWork,” he added. “And we would highly recommend that investors avoid this IPO. It's a ripoff for retail investors.”
DOORDASH IPO DELIVERS BIG, SHARES SOAR 86%
The food-delivery app opened Wednesday at $182 per share and quickly surged more than 80% upon initial offering.