CNBC’s Jim Cramer said Wednesday he believes there is “rabid money” interested in upcoming technology IPOs, but he urged young investors not to chase after DoorDash once the third-party delivery company goes public.
“When people know the brand, the younger inventors just say, ‘You know what, get me some,'” Cramer said on “Squawk on the Street,” “DoorDash is used by a lot of younger people, both in the suburbs and in the cities, so I think you’re going to see incredible enthusiasm,” he added.
DoorDash, which is expected to begin trading Wednesday, sold shares in its initial public offering at $102 apiece, above its targeted range between $90 and $95.
Cramer urged young investors to be careful about chasing the stock, which is expected to pop when it opens. The “Mad Money” host previously advised investors to only buy it below $100 per share. DoorDash is the first IPO in a late-year consumer technology wave that includes the expected debut of online home rental marketplace Airbnb on Thursday.
“I don’t want them to lose what discipline they have, because then we’re starting to get into a 1998, 1999 period,” Cramer said Wednesday, referencing speculation in tech stocks fueled the dot-com bubble.
DoorDash has experienced tremendous growth during the coronavirus pandemic, with stay-at-home orders leading to more consumers opting to have food delivered to their door. The company’s order volume was $16.5 billion through the first nine months of this year, up from $5.5 billion in the same window of 2019.