Shares of Airbnb (ABNB) - Get Report jumped while shares of DoorDash (DASH) - Get Report declined despite a bullish note from analysts at Susquehanna initiating coverage of the two companies with positive ratings.
Airbnb was initiated with a positive rating and $180 price target. DoorDash also was initiated with a positive rating and $185 price target. Both price targets are Wall Street highs for the stocks.
"ABNB created the short-term rental market and is the clear leader in the space. The strong brand has created a powerful flywheel for its two-sided marketplace (guests and hosts) and enables the company to generate the significant majority of its traffic directly, which is unparalleled in the online travel sector," analyst Shyam Patil wrote.
The firm called DoorDash the "dominant player" in the food-delivery business that is "strong and sustainable" despite the fact that there is a ton of competition in the space.
DoorDash is "well positioned for continued expansion into new verticals," including grocery deliveries, "enabling DASH to continue to rapidly grow revenue and expand margins."
Airbnb shares rose 4.9% to $154.30 on Friday, while DoorDash shares fell 3.5% to $148.75.
Susquehanna's bullish note came a day after DoorDash was called the "most ridiculous IPO of 2020" by short-selling firm Citron Research.
"There is no business that is more commoditized and competitive than having food delivered from the restaurant to your home. There is zero differentiation between Uber Eats, Postmates, Caviar, Grubhub, DASH, or any local provider. Even worse, this business model has no brand loyalty as the consumer just picks who will deliver their food for the cheapest price," the report said.