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Oracle s move could could prompt others to relocate to Texas, experts say
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The Silicon Insider Podcast: Top Silicon Valley tech news stories include DoorDash, Airbnb monster IPOs
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It was already a great year for IPOs, but this past week took things to an entirely new level.
DoorDash (ticker: DASH) and Airbnb (ABNB) started the week as private companies last valued at a combined $34 billion. They ended the week as public companies together worth nearly $170 billion. The initial public offerings capture how Covid-19 has fundamentally shifted the economy and the financial markets.
Here’s what we learned from the historic week.
Growth Is the New Value: Investors are desperate for growth, and they don’t care what it costs. Snowflake (SNOW) is growing 100% a year, a level it can’t possibly sustain. The data warehousing stock has tripled since its own IPO in September, and it’s trading at 100 times next year’s projected revenue, a figure that’s tough to justify.
Tom Siebel, Founder and CEO of C3.ai F. Carter Smith/Bloomberg
C3.ai had a spectacular debut in the public market on Wednesday. The artificial-intelligence software company priced an offering of 15.5 million shares at $42 a share, above the expected range of $36 to $38 a share, before opening at $100. The stock closed its first day at $92.49, a 120% gain from its IPO price.
Among other things, the IPO marks the return to public view of Tom Siebel, the founder and CEO of C3.ai (ticker: AI). The legendary software entrepreneur was an early executive at
Oracle (ORCL) and the founder of the customer relationship management software pioneer Siebel Systems, which he sold to Oracle for $5.86 billion in 2006.
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