When the DoorDash arrives at the Airbnb
That escalated quickly... If the stock market was Hollywood, this week would've been its Sundance Film Festival. Two famous tech platforms delivered back-to-back blockbuster IPOs in their debuts on the public market. BTW: the IPO price is what institutional investors (like mutual funds) — not regular investors like us — get to pay per share.
Hungry for PDA ... Despite a pandemic and an economic crisis, 2020 has been a blockbuster year for IPOs overall. We whipped up two explanations for the IPO-palooza:
Don't forget interest rates... Stocks have rallied to record highs partly because interest rates are at record lows (shout-out: the Fed). Super low interest rates can inflate the value of assets like stocks, because they make things like savings accounts seem less attractive. If the APY on your savings account is higher, you're less likely to invest in stocks, which carry risk. If the interest rate is nearly nothing, you're probably more likely to invest, driving up stock prices.