Gig-economy stocks join larger market in severe downturn before recovering at close
Like the broader stock markets, gig-economy companies staged a comeback of sorts to close out Monday’s volatile session, but not before DoorDash Inc. shares hit an all-time low and Airbnb Inc. flirted with its steepest drop on record.
Major U.S. stock markets and indexes, which plunged in early trading due to a combination of factors that include the ongoing coronavirus pandemic and a potential Russian invasion of Ukraine, closed in positive territory.
DoorDash DASH, +0.34% stock reached an all-time intraday low of $106.28, the closest shares have come to the $102 price charged in the company’s initial public offering since beginning trading. Shares appeared to be headed for a closing record low of $112.99 before rallying, closing 0.34% higher at $117.35.
The online-delivery platform’s shares had declined in seven of the past eight trading days. DoorDash, which has thrived during the pandemic because of stay-at-home orders and shutdowns, remains the leading food-delivery app in the U.S. as restaurants have reopened but continue to see changing conditions and restrictions.
Airbnb ABNB, -5.63% had been on track for its biggest drop ever, falling more than 13% in intraday trading and becoming the worst performer in the Nasdaq 100, according to data from Dow Jones and FactSet. Its shares have never declined more than 9.1% in a single session, with that record set nearly a year ago, on Feb. 25, 2021. The stock of the lodging-booking company had dropped in six of the past seven sessions and was on pace for its worst month since May 2021, as COVID-19 infections affect the travel industry around the world. It ended regular trading 5.63% lower at $147.90.
Meanwhile, ride-hailing giants Uber Technologies Inc. UBER, +0.95% and Lyft Inc. LYFT, +0.90% were on track for new 52-week closing lows before recovering Monday. Uber stock had declined eight sessions in a row, its longest losing streak, but ended the day in the green, rising 0.95% to $36.28. Lyft, on pace for its worst month since March 2020, when it fell 29.56% as the coronavirus pandemic spurred a widespread economic shutdown, ended the day 0.9% higher at $37.13. While the companies have seen a resurgence in demand for rides, they had not fully recovered in all markets before the omicron variant of COVID-19 brought new uncertainty.