DoorDash IPO is here!

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Dec 8, 2020

Apple vs Peloton

In the latest tale of a large tech company attempting to take market share from a competitor’s niche, Apple (NASDAQ: AAPL) has announced that it will be offering Fitness+ on the 14th of December, just in time for you to order it as a passive aggressive gift for your unhealthy friends and family.

In response, shares of Peloton (NASDAQ: PTON) are only down 2%; part of this low drop can be traced back to the fact that Apple had already mentioned their move before. Another factor supporting the stock price is that despite Apple’s undercutting of Peloton’s subscription service for use without a bike, Peloton is still one of the companies with a vice grip on high tech workout hardware.

In other words, Peloton is insulated until Tim Cook decides it’s time to release the iBike.

The Vaccine

The vaccine is finally here, sort of. The United Kingdom started rolling out the vaccine today. This rollout presents a test for the global supply network of the vaccine and will demonstrate the worlds ability to delivery the vaccine across the globe.

On this side of the pond the vaccine will start rolling out across the states throughout the end of the week. With FDA approval expected tomorrow, we could see vaccines being delivered as early as thursday.

We might finally be out of this hell, maybe.

Dashing Through The Snow

DoorDash is expected to IPO tomorrow morning at a price point around $102 per share, giving them a jaw dropping valuation of $39 Billion. This is a huge uptick from the $15 Billion valuation earlier this year.

DoorDash, which has seen its service skyrocket due to the pandemic, is one of the hottest IPO’s of the year. Many analysts are worrisome about demand dropping after the vaccine is released, but this global shift to ecommerce and delivery might be able to hold them strong. Join our community here to see what more input our analysts have!

A Look at the Numbers Special Series: Publishing (2/5)

The trade book industry in the US has been relatively stagnant over the past decade — according to Statista, net revenue has only increased by 7.3% between 2013 and 2019, a number dwarfed by high growth industries like cloud services, which have been growing at a rate sometimes north of 20% per year.

Still, there are some interesting internal movements within the publishing industry. While it’s modernization arguably began with the ability of consumers to have books shipped to their home via services like Amazon in 1995 and Barnesandnoble.com in 1997, the shift took a different form come the release of E Readers in the mid to late 2000’s.

Again taking a look at the major players in the market, Amazon released their Kindle in 2007, while Barnes and Noble released their Nook in 2009. Despite a spike to an average spend of $30 per consumer on these devices in the US in 2013, the number drifted down to $19.70 per consumer by 2019 as Ebook’s became more easily available on devices not even necessarily designed for them.

Tomorrow, we’ll look at the relationship between EBook, paperback, and hardback sales.

Growth Investing Education

As much as a healthy skepticism of alleged growth companies is needed to avoid falling into gimmicky and attractive traps, the statistic in the above article about the growth rate in the cloud services industry should demonstrate the validity of some of the price action.

Moreover, it’s important not to forget the quickly compounding nature of a growth rate like 20%: if there are 100 spendmable dollars on a product in the first year, then there should be 120 in the second, 144 in the third, and 172.8 in the fourth. This kind of growth is exponential — seeing it can help explain the hubhub around investing in companies with these kinds of projections for their industry.

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