There were two big IPOs last week – DoorDash and Airbnb. Both companies raised over $3.5 billion in their public offerings. In his podcast, Peter Schiff talked about the IPO frenzy. He argues that it has very little to do with funding great business ventures. It's more about making a quick buck in a market juiced by easy money from the Federal Reserve.
DoorDash started in 2012, and Airbnb was founded in 2008, but neither company has turned a profit in any year they have operated. This big IPO is clearly not about wildly successful companies looking for capital so they can expand. Even before the IPO, both companies raised billions of dollars from venture capitalists.
"It's not like they went public because they needed the money. They have billions and billions of dollars that they've already raised. Airbnb is a household name – pretty much all over the world. What do they need money for?"