I wonder is it possible for them to somehow prevent stock from dipping below $30? The chart is just too weird, and the rest of tech is down today, yet they are magically flat and just settling with low volatility right at 30. Is it possible they are just buying their own stock to keep price floor, much like central banks often do for their currencies?
That would result in a veery long time in jail.
Lol
The underwriter of the ipo, Goldman et al, agree to take on “propping up the stock” up to an investment limit proportionate to how much they were guaranteed to make to stabilize the stock post ipo. Once that runs out the stock will drop.
It's called greenshoe options. It's legal and is part of the IPO process. Banks sell 15% more stock than the issue (resulting in a net short position), then if the price goes below the IPO price they cover the short position by buying stock on the market, this stabilising the price.
That does make sense. Thank you
Overvalued trash like door dash. Many people learnt lots of lessons in 2021. Others who want to lose money/learn lessons will buy into this hype (or buy dip on Cart)
Put options are available. If you think it’s overvalued, then you have an amazing opportunity to put your money where your mouth is
Folks from Instacart, stop commenting on this type of topics please.
Boss man trying to cover up. 😂
Who cares about small money like this
Of course they are. Takes time to unload that much shit on to unsuspecting retail traders and pension funds. Just look at how long doordash (another wildly unprofitable business) was kept above water.
Instacart PE ratio of >0.0 != “unprofitable”. Duh.
That’s not how that works at all. Long story short. IPO was a limited float, and those with allocations Banks and Long only funds are locked up for x amount of time. So there will be limited volatility in the stock
So it’s a coincidence that it’s hovering at $30? You don’t agree with the other guys who explained what green shoe options are?
No
Why
Economics 101