Unlikely and maybe not the best comparable, but one detail caught my attention.

Doordash went public today and popped at $182… valuing the business at $80 billion. Some food for thought. Doordash is a different business than the restaurants it supports, but FWIW:

  • Chipotle (NYSE:CMG) is valued at $36.9 billion;
  • Yum Brands (NYSE:YUM) with its $31.3 billion;
  • Domino’s Pizza (NYSE:DPZ) with its $15.3 billion cap;
  • Dunkin Brands (NASDAQ:DNKN) with its $8.8 billion cap.

It reminded me of this:

On March 30th, 1999, Priceline.com went public in one of the hottest initial public offerings ever. Timed near the end of the bull run which would pop the ensuing year, shares of Priceline were initially priced at $16 but opened for their first trade at $26.62, before hitting as high as $85. They closed at $69 for a 1-day initial return of 331%. On that fateful evening: Priceline was valued more than United Airlines, Continental Airlines and Northwest Airlines combined!

Twenty years later, Priceline is now know as Booking Holdings Inc. and this is what the stock looked like after the IPO. It took considerable fundamental and macro trends to catch up to the hype, before the company reflected its potential. There’s a deeper analysis and breakdown of parallels and differences, but seeing its value soar above the underlying, profitable businesses they serve and support was… interesting.

I really don’t think Doordash is Priceline, but seeing its first day valuation soar like that gave me flashbacks to the dot com bull market and the correction that always ensues.

Disclaimer: Nothing here should be misconstrued as investing advice. I am NOT licensed to give any advice. These writings are intended as entertainment to put into context how a media entrepreneur and investor thinks, given my unique time horizon and risk profile. Educate yourself, read up on mistakes others have made and speak to a licensed professional who can help you based on your investment profile and time horizon.