Why is Instacart valuing itself at a small fraction of what DoorDash did? Because investors have become far more rational and more demanding.
In late 2020, the food delivery company DoorDash went public on the Nasdaq at $102 a share. It had $2.8 billion in annual revenue and no profits, but investors were not deterred: Demand for the company’s shares was so high that the stock rose 86% on the first day of trading, giving DoorDash a market cap of $72 billion.
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