Jim Cramer calls IPO costs “damaged” after Airbnb DoorDash debuts
Scott Mlyn | CNBC
CNBC’s Jim Cramer on Friday harshly criticized the way investment bankers handled recent IPOs for companies like DoorDash and Airbnb, two tech companies that saw big pops in their stocks after starting trading this week.
“I don’t want to say the market is broken, but the process of how we do this business is definitely broken,” Cramer said on Squawk Box.
Food delivery app DoorDash closed more than 85% on its market debut on Wednesday, while apartment rental Airbnb closed its first day of trading on Thursday by more than 112%.
Those massive first-day moves that left so much money on the table are not the companies’ fault, Cramer said.
Instead, he said it was “embarrassing” work by the financial firms involved in the IPOs. “You should focus on how to do it better.”
Cramer said the recent price action reminded him of the dotcom boom in 1999 when retail investors showed a similar interest in future public companies.
“This happened in 1999 when the consortium offices completely misjudged the public and the public is back and they are pricing deals as if the public isn’t back and it’s just the same old, same old funds buying stocks,” said the ” Mad Money “host said.