Can’t Stop the Bleeding (Silicon Valley IPO)
Our contributor today rebuts a Canadian reader who said voting needs to be the same across these United States.
“Someone needs to inform our Canadian friend that the United States were meant to be just that: a union of sovereign states, banded together and mutually agreeing to establish an overarching federal government of limited powers to — among other things — provide for the common defense, to engage in limited foreign affairs and to regulate interstate commerce.
“These powers are enumerated in our Constitution at Article 1, section 8. The Tenth Amendment to the Constitution states in full that “[t]he powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”
“Since that time, through the dereliction of the states, the feral (er) federal(!) government — particularly the Executive branch –has acquired unto itself many additional powers. Now, to the outside observer, the sovereign states may appear to be merely fifty quaintly-shaped administrative districts that exist solely to carry out the commands of the central government. But that is not (yet) so.
“The responsibility in this country to hold elections is solely with the states. If the feds wish to take charge of elections, even just elections to national office, they will most likely need to amend the Constitution.
“To attempt to take this power through a statute or Executive order would almost certainly fail a challenge in our Supreme Court.”
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Your Rundown for Monday, Nov. 30, 2020…
Two weeks ago, Silicon Valley company DoorDash filed with the SEC to go public under the ticker DASH sometime before the end of the year.
“The app-based platform, which partners with restaurants and depends on on-demand couriers to deliver takeout meals, said it was already seeing an increase in restaurant-food delivery in the past couple of years,” according to an article at MarketWatch.
“The coronavirus pandemic sped that up, and DoorDash saw tremendous growth.”
To wit, for the first three quarters of the year, the company’s revenue increased to almost $2 billion from $587 million for the same period in 2019.
But like so many other high-profile tech startups, the company’s hemorrhaging money.
DoorDash stated: “We have incurred net losses in each year since our founding, we anticipate increasing expenses… and we may not be able to maintain or increase profitability in the future.”
Back to DoorDash’s IPO, the meal-delivery service plans to list 33 million shares — priced between $75 and $85 per share — with three classes of stock.
- Class A common stock: shareholders guaranteed one vote per share
- Class B stock: shareholders granted 20 votes per share
- Class C stock: shareholders will have no voting rights
According to DoorDash’s SEC filing: “Upon the completion of this offering, all shares of Class B common stock will be held by Tony Xu, Andy Fang, and Stanley Tang, or our Co-Founders, who are all current executives and directors.”
MarketWatch cautions: “Xu — who will be able to vote the shares held by Fang and Tang — is set to join the club of ultra powerful founders who are hard to hold accountable, such as Google co-founders Larry Page and Sergey Brin, and Facebook Inc. CEO Mark Zuckerberg.”
We’ll keep you up-to-date on DASH… and a raft of other tech companies going public by year’s end.
Market Rundown for Monday, Nov. 30, 2020
S&P 500 futures are down 10 points to 3,625.
Oil’s lost 35 cents to $45.18 for a barrel of West Texas crude.
Gold is down $14.40 per ounce to $1,775.80 per ounce.
Meanwhile, bitcoin continues to rally — up 3% to $18,915.
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It’s the Monday after Thanksgiving weekend, and the last day of November. Time flies — whether fun or not. Have a good one!
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