DoorDash co-founders to sell millions of shares

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DoorDash co-founders to sell millions of shares

The company said that the three co-founders of DoorDash Inc. will sell millions of shares in the company beginning next month.

They will sell up to 6.6 million shares among them because DoorDash, Chief Executive Tony Xu, Chief Technology Officer Andy Fang and Chief Product Officer Stanley Tang have unexercised stock options that expire on June 25, 2024.

Tony Xu, co-founder and CEO of DoorDash Inc. The trading plans adopted by the executives were in compliance with federal rules designed to avoid accusations of insider trading because rules limit the number of shares they can sell in a three month period. Xu intends to sell up to 2.2 million shares of Class A common stock, while Fang and Tang plan to sell up to 2 million and 2.4 million shares each. DoorDash shares fell more than 2% in after-hours trading, and closed 3.5% lower at $56.56 Monday. They have declined about 50% in the past 52 weeks, but are up nearly 16% so far in 2023. DoorDash's market value is $22.76 billion. The app-based delivery company is expected to report fourth-quarter earnings on February 16.