DoorDash Stock Is Falling Because Wall Street’s Initial Coverage Is Mostly Dim on Valuation
What is DoorDash and how does it work?
· DoorDash ( DASH 10.22%) shareholders lost ground to the market this week, with the stock falling 11% through Thursday trading compared to a 0.2% drop in the S&P 500, according to data provided by ...
Why did DoorDash’s revenue grow 35% in March?
· DoorDash (NYSE: DASH) fell 9.52% on Wednesday as the bouncy trading in the online food delivery stock continued. The stock is being identified by some analysts as being at risk of losing its...
When was DoorDash founded?
· DoorDash stock has declined by about 30% over the past month, driven partly by the broader sell-off in technology and high growth stocks. So is this a good time to enter DoorDash stock? So is this...
Will Shake Shack’s Buffalo Chicken Sandwich on DoorDash boost sales?
· Forbes Jan. 31, 2022, 07:00 AM DoorDash stock has declined by about 34% thus far in 2022, and remains down by over 60% from highs seen last November 2021. In fact, the stock now trades below its...
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· DoorDash's stock is plummeting; I suspect investors are worried about the competition risks. Walmart and Instacart are big same-day grocery delivery companies. Amazon has a 40% market share in e ...
Is DoorDash stock a good buy?
While the company received a B+ for growth and a C- for profitability, it was given a D for momentum, a D+ for revisions, and a D- for valuation. For a bullish view on DoorDash, read SA contributor Julian Lin's “Door Dash: Positive Cash Flow, 13% Net Cash, Long Growth Runway, Moving to Buy”.
What happen to DoorDash stock?
Firstly, DoorDash stock has taken a beating in recent months, falling by 25% year-to-date, and by over 55% from its all-time highs of mid-2021, and investors are now seeing more value in the company, which is actually seeing demand for food delivery hold up pretty well, despite the Covid-19 reopening.
Will DoorDash ever be profitable?
DoorDash has never made a profit and although the US food delivery market is consolidating, it still looks unlikely that it will post a profit in 2021.
Is DoorDash profitable 2021?
DoorDash recorded a 69% jump in revenue from 2020 to 2021, totaling $4.89 billion for the year, according to the company's full-year 2021 earnings results. Fourth-quarter revenue hit $1.3 billion, and the company predicts transactions could total up to $50 billion this year — $8 billion more than it snagged in 2021.
The race to the bottom
Platform technology companies like DoorDash often find it difficult to defend their concepts from competitors, as they're rather simple and inexpensive to replicate.
The great deceleration
As time goes on, it's becoming evident that 2020 might've been the company's peak year for growth .
Why investors shouldn't buy the stock
DoorDash has so far failed to convert its pandemic success to the bottom line, which has investors rightfully questioning whether it will ever generate a profit. To circle back to the competition argument from earlier, part of the problem is the money DoorDash needs to spend to retain existing customers and acquire new ones.
How much is DoorDash worth in 2020?
We expect it to rise to about $24 billion in 2020, as Covid-19 caused orders made on the platform to surge almost 3x over the first nine months of the year.
Does DoorDash own Chowbotics?
Separately, DoorDash also acquired Chowbotics - a startup that sells robotic equipment that can automate the process of making meals such as salads and poke bowls. It’s possible that DoorDash’s increasing interest in automating food production is also helping the stock.
Summary
DoorDash's stock is plummeting; I suspect investors are worried about the competition risks.
3 years from Challenger to Dominance
This is the graph that showcases beautifully how DoorDash in a relatively short time has amassed a leading position in the food delivery industry. Still, this graph does not show the underlying market shares per region which differ vastly.
The competition
Contrary to popular belief, DoorDash has not won food delivery in the entire US. Take Manhattan: in Manhattan, DoorDash operates a market share of 15%, which doesn't sound like a profitable share to me.
The giants
Short-term what worries me the most for DoorDash's prospects is the fact that Just Eat Takeaway ( OTCPK:TKAYF) is practically putting Grubhub for sale through a 'partnership', whatever a partnership may entail. More recently, there has also been speculation about a potential Grubhub sale.
DoorDash's vision
DoorDash sets out to be the logistics platform to deliver a broad range of goods, but for now, obviously, that is mostly food. Some readers ask me: what is the moat here? I think the moat is made up of valuable network effects which users experience as the supply of available merchants, consumers, and drivers increases.
Takeaway
The market is starting to rightfully question the prospects of this enterprise. If management achieves their goals, this stock is a potential 10 bagger. But with the juggernaut Amazon snooping around in the same-day delivery market, I seriously question whether the company will ever achieve its goals.
When will Doordash release its results?
DoorDash, Inc. (NYSE: DASH) today announced that the company's second quarter 2021 financial results will be released after market close on Thursday, August 12, 2021. The company's earnings press release and shareholder letter will be made available on the DoorDash Investor Relations website at ir.doordash.com.
How much is DoorDash worth?
DoorDash Block Worth $2.2 Billion Is Offered by SoftBank. (Bloomberg) -- SoftBank Group Corp. is offering $2.2 billion of its stake in DoorDash Inc. in a block trade through Goldman Sachs, according to a person familiar with the matter.
What is DoorDash food delivery?
Food delivery company DoorDash (NYSE: DASH) was in the right business at the right time at the onset of the pandemic. With in-person dining restrictions, hungry customers chose to order takeout and delivery from their favorite restaurants. DoorDash's platform helped restaurants survive the outbreak as online orders became the only option for businesses that had to otherwise shut down completely.
What is Dollar General's partnership with DoorDash?
Dollar General (DG) partners with DoorDash to offer on-demand delivery of a variety of household essentials.
Is DoorDash a non profit?
DoorDash Inc. (NYSE: DASH), the leading last-mile logistics platform, today announces a partnership with HUB Cycling, a not-for-profit transportation cycling organization that aims to remove barriers to cycling in Metro Vancouver. This partnership includes a series of new initiatives to make the streets safer for everyone, including those that deliver meals and other essentials on bikes.
Does DoorDash have a free subscription?
Royal Bank of Canada (RY) and DoorDash, a leading last-mile logistics platform, have announced a joint initiative under which eligible RBC credit cardholders will receive a free subscription to DashPass for up to 12 months, depending on the credit card they hold. With DashPass, DoorDash's subscription program, customers pay no delivery charges and enjoy reduced service fees on eligible orders, as well as other benefits at participating locations when they place an order for take-out or delivery
Is Doordash a meme?
DoorDash isn't one of those so-called meme stocks that trade more based on what's said in internet chat rooms than on business fundamentals, but traders have kept a close eye on any stock with a high level of short interest, hoping to rally around its shares and cause a short squeeze.
What is DoorDash?
Founded on 12 January 2013 as Palo Alto Delivery to provide hassle-free food delivery options for restaurants in downtown Palo Alto, California, the company connected drivers and delivery agents with restaurants. It rebranded as DoorDash in June of that year.
DoorDash news
Some DoorDash stock news spotlights the company’s moves to meet fierce competition in the on-demand delivery market. Erinn McCully, director of Modern Market’s off-premise sales, says DoorDash’s promotions have helped sales grow threefold compared to other partners.
DASH price analysis
Before diving into a DoorDash stock price forecast, we need to study the company’s financials, fundamentals and analyse past performance.
Price forecast: what are experts saying?
The DoorDash stock future price could be forecast through the analysis of technical indicators. According to TradingView, the one month Relative Strength Index (RSI) , simple moving averages (SMA) and exponential moving averages (EMA) for 10 weeks point towards ‘neutral’.
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The Race to The Bottom
- Platform technology companieslike DoorDash often find it difficult to defend their concepts from competitors, as they're rather simple and inexpensive to replicate. If consumers are presented with a handful of platforms that do the same thing, the price might be the only difference-maker, and that triggers a race to the bottom as competitors jostle to earn business. Anyone who's eve…
The Great Deceleration
- As time goes on, it's becoming evident that 2020 might've been the company's peak year for growth. Data source: DoorDash, Yahoo! Finance. YOY = year over year. When zooming in to observe just the last year, the rapid decline in growth rate becomes even more apparent. Data source: DoorDash. YOY = year over year. Additionally, DoorDash's gross order volume (GOV) -- th…
Why Investors Shouldn't Buy The Stock
- DoorDash has so far failed to convert its pandemic success to the bottom line, which has investors rightfully questioning whether it will ever generate a profit. To circle back to the competition argument from earlier, part of the problem is the money DoorDash needs to spend to retain existing customers and acquire new ones. Over the last 12 months...