10/2/2023 0 Comments Nyse dash![]() The gains are driven largely by DoorDash’s announcement that it would be acquiring international food delivery platform Wolt – which has operations in 23 countries – in an $8.1 billion all-stock deal. The stock also remains up by about 8% over the last month, compared to the S&P 500, which was up 7% over the same period. Gaining 8% Over The Last Month, What’s Next For DoorDash Stock?ĭoorDash stock (NYSE: DASH) has gained about 4% over the last week, outperforming the S&P 500 which remained roughly flat over the same period. Looking for other stocks that stand to benefit from the extension of the at-home trend? Check out our theme of Work From Home stocksīelow you’ll find our previous coverage of DoorDash stock where you can track our view over time. See our dashboard on DoorDash Revenuefor an overview of DoorDash’s business model and how its revenues are likely to trend. See our analysis DoorDash Valuation: Expensive Or Cheap? for more details on DoorDash’s valuation. We value the stock at about $130 per share, roughly in line with the current market price. That being said, we still have some concerns regarding the company’s unit economics and lack of profitability, despite the big surge in demand through the pandemic. DoorDash has also been pushing into other delivery areas such as groceries and retail consumer products, which could be larger markets. Moreover, DoorDash’s expansion plans are also gaining traction following its acquisition of fast-growing European food delivery company Wolt, which enables it to enter 22 new markets. ![]() ![]() We could also see a partial impact of this in DoorDash’s Q4 results, due in February, with the full impact likely to be seen over Q1 FY’22. are soaring to all-time highs, averaging over 700,000 cases over the last week and this could cause more people to order in rather than head to restaurants, helping demand for DoorDash’s services. There are multiple developments that could drive DoorDash stock higher in the near term. So is DoorDash stock a buy at current levels of around $132 per share? While we had largely been bearish on DoorDash stock through 2021, we think the stock might be worth a look for investors looking to play the delivery market following the sizable recent correction. DoorDash, which trades at about 9x 2021 revenues and has yet to turn profitable, has likely been impacted by this shift. For example, investors are likely rotating out of richly valued pandemic winners into value stock as the Federal Reserve plans multiple rate hikes through 2022 to combat surging inflation. So what’s driving the current sell-off? Although the fundamental picture hasn’t changed too much for DoorDash stock, with the company posting better than expected revenue growth over the most recent quarter, we think the stock is being impacted by some technical factors. DoorDash stock (NYSE: DASH) has declined by about 20% over the past month and remains down by over 45% from its early November highs.
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