This company went public at a high valuation and is considered a growth stock since it is able to justify its negative profit margins with impressive revenue expansion. A recent commitment to expand partnerships with grocery stores and other industries seeking an on-demand e-commerce platformĪlthough DoorDash receives its fair share of criticism, perhaps the sell-off may be overdone at this point.Costs per order have been reducing each quarter.Market penetration remains low, both U.S.Taking a step back, there are a few reasons why I believe DoorDash remains a growth story with upside potential to reach profitability: There are countless scenarios where DoorDash can add value for everyday consumers like this, but it will take time for them to achieve. In just a matter of minutes, a "Dasher" (nickname for the delivery person for DoorDash) showed up at the park and hand-delivered a brand-new pair of shorts. Rather than suffering in the heat or having to go home and change clothes, they decided to order shorts from DICK'S Sporting Goods ( DKS ) via DoorDash from their phone. There was a video circulating online earlier this year of a person who was out with friends at a park during a hot summer day wearing long pants. To better illustrate, let's use an example. DoorDash has the foundation and infrastructure to achieve this. Imagine having instant access to a one-stop shop for any goods you'd find at a brick-and-mortar store that can be delivered to you the same day. Can DoorDash Sustain Its Growth?īelieving a company can sustain growth for years in a competitive space requires a lot of forward-thinking and maybe a little bit of luck along the way. The company needs to continue focusing on expanding its market share while managing cost per order effectively. While most people associate DoorDash solely as an industry-leading food delivery service provider, I believe it has the potential to become a multi-sector, on-demand delivery juggernaut. Restaurants and grocers should continue to expand indefinitely, albeit slowly. It's hard to imagine a scenario where DoorDash's core business is eradicated due to macro or industry-wide issues. Food has been, and always should be, a relatively inelastic product.
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In 2020, the firm generated $24.7 billion in gross order volume (up 207% year over year) and $2.9 billion in revenue (up 226%).Ĭlick Here to get the full Stock Report for DoorDash Inc stock.DoorDash ( NYSE: DASH) management described it perfectly in their latest investor newsletter: "People need to and typically enjoy eating". At the end of 2020, DoorDash had over 450,000 merchants, 20 million consumers, and over 1 million dashers on its platform. The firm provides similar service to businesses in addition to restaurants, such as grocery, retail, pet supplies, and flowers. The firm provides a marketplace for the merchants to create a presence online, market their offerings, and meet demand by making the offerings available for pickup or delivery.
Consumers can use its app to order food on-demand for pickup or delivery from merchants mainly in the U.S.
More About DoorDash Incįounded in 2013 and headquartered in San Francisco, DoorDash is an online food order demand aggregator. To see InvestorsObserver's Sentiment Score for DoorDash Inc click here. The stock has traded between $83.41 and $84.89 so far today. So far 1,823,687 shares have traded compared to average volume of 2,865,796 shares. DoorDash Inc (DASH) stock is trading at $84.77 as of 11:35 AM on Thursday, Jul 20, a decline of -$0.33, or -0.39% from the previous closing price of $85.10.
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