Tony Xu, CEO of DoorDash, whose stock jumped 85% on its first day of trading following an initial public offering on Wednesday, said in an interview that “the market will clear what the market will clear,” referring to the share price and the hefty business expectations it implies.
Xu said during a Zoom video interview from his San Francisco home that his management team chose the $102 a share price for the stock it sold in the offering “very carefully.” Regarding the price uptick after the stock started trading—to a close of $189—he said, “I’d leave to people much smarter than myself to make their investments.” His team’s price decision came at the end of an IPO process for the restaurant delivery firm, led by Goldman Sachs, that was meant to minimize a stock price pop. But a big pop happened anyway, underscoring a bull market that has caused seemingly every late-stage tech company as well as some nascent businesses to sprint to the stock market.
