(Bloomberg) -- DoorDash Inc.‘s shares fell on Thursday after short-seller Citron Research called its initial public offering the “most ridiculous” of the year and said the stock is worth a fraction of its current price.
The stock is worth $40 a share, Citron said in a research report, citing intense competition in the market for food delivery, lack of brand loyalty from customers and potential government regulation. That would represent a 75% decline from Wednesday’s closing price.
DoorDash fell as much as 5.1%. As of Wednesday, the stock had gained 55% since its debut last week. DoorDash didn’t immediately respond to an email seeking comment.
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