Airbnb and DoorDash will make their stock market debut this week, leading a ‘unicorn parade’ that caps a busy IPO year. 

These ‘unicorns’- startups whose value has crossed $1 billon- are key entrants in a market eager for young businesses with potential for growth, buoyed further by lifestyle changes due to the coronavirus pandemic.

This week’s big initial public offerings (IPOs) include food-delivery service DoorDash, home-sharing platform Airbnb, and e-commerce operation Wish.

According to US media reports, DoorDash is valued at $38.7 billion, owing to a boom in delivery of meals and groceries during the pandemic. Its opening share price is $102. 

Airbnb’s home-sharing platform has offered more appeal during the pandemic, as compared to other hospitality options offered by the travel industry.

There have been 420 initial public offerings (IPOs) on US markets so far this year, some 88% more that at this point a year earlier, according to StockAnalysis.com, as per AFP reports.

“You are seeing some of the strongest tech companies of the last five to seven years come public, like Palantir,” Wedbush analyst Dan Ives told AFP. “It has definitely been a strong year for IPOs.”

“Secular growth stories” in sectors such as e-commerce, cybersecurity, and cloud computing, are especially hot tickets,  Ives reportedly noted.

“It is a case of striking while the iron is hot, because there is going to be a market correction,” said analyst Rob Enderle of Enderle group, as per AFP reports, explaining why startups are looking to raise money in the public markets. “You want to do an IPO and get your money before that happens.”

Some analysts, however, are skeptical of this phenomenon, saying the pandemic has ‘distorted the economy’ and that it’s ‘too soon’ to determine the longevity of these emerging firms.

“How long will the party last? No one knows,” said Charlie Bilello of Compound Advisors in a research note, adding that “IPO fever (is) as hot as it’s been since 1999-2000,” as per AFP reports.