Shares of Chamath Palihapitiya-backed Desktop Metal slipped as much as 14% on Thursday after the 3D printing company went public via SPAC.Palihapitiya tweeted
DoorDash and Other Offerings Trigger Some Corrective Action Despite negative volatility, at this point it looks like a pause in the uptrend and not a major top.
Stocks suffered some corrective action on Wednesday as the high-momentum names suffered as DoorDash (DASH) and other IPOs and secondaries attracted the hot money. While the recent momentum and SPAC names saw a jump in negative volatility, DASH jumped nearly 80% from its offering price.
This market has been overdue for some sort of corrective action and the offerings provided a convenient excuse even if they didn t impact overall liquidity that much. The price action often determines what the headlines might be and in this case, it was quite easy to attribute the weak action to a combination of overbought technical conditions and big IPOs.