DoorDash is being valued at 17 times revenue, assuming you take the last quarter and extend it over a year. By the same metric, Uber is valued at less than 8 times revenue, and GrubHub agreed to be acquired earlier this year for under 4 times sales. Lyft, which has a very limited food delivery business, trades for about 7.5 times revenue on that basis.
Start-ups like Discord and Robinhood are raising more money at sky-high valuations, and then being inundated with new funding offers. Venture capitalists are fighting to get into deals. And as the delivery service DoorDash and the home rental start-up Airbnb prepare to go public this week, the bonanza of initial public offerings is likely to enrich and fuel Silicon Valley’s start-up boom even more.
“I haven’t seen anything like this in over 20 years,” said Eric Paley, an investor at the venture firm Founder Collective. “The party is as loud and the drinks are flowing as freely as the dot-com boom, despite that we’re all drinking at home and alone.”
After Discord, a social media platform, raised money in June valuing it at $3.5 billion, investors immediately called to give the company more funding, one person with knowledge of the company said. Now Discord is in talks to raise more and to double its valuation to $7 billion, said two people with knowledge of the talks, who were not authorized to speak publicly. Discord declined to comment. TechCrunch first reported on its new funding.
DoorDash is now valued at nearly $70 billion while Airbnb is worth more than $100 billion.
These type of valuation makes you wonder why traditional businesses like grocery, restaurants, auto, steel, oil, airlines, hotels, apparel, banks, … should be operating. All should just liquidate their businesses and plough proceedings into hot techs. We don’t food, beverages and energy. We need tech
Google (GOOGL) (now Alphabet), Facebook (FB) and Alibaba (BABA) were all profitable before their IPOs – and those three stocks have thrived.
yep. everything valued at 20x - 100x sales (not profit, but sales). Seems more inflated then what i remember from the .com days (I think it was posted earlier that Cisco topped at 33x sales before market crashed)