![]() Some independent restaurants have been vocal critics of the company, saying its commissions - which can approach 30% - are too high. White says DoorDash also has the most variety in its listings, giving it less exposure to any one restaurant chain. But suburban families put in larger orders and drivers encountered more predictable traffic and parking so they could deliver more efficiently, Shmulik said.ĭavidson analyst Tom White, who has a “buy” rating on DoorDash’s stock, said the company’s strong market share gains and future possibilities, including grocery and retail delivery, outweigh the risk of slower growth once the pandemic subsides. Skeptics thought the economics of food delivery would fall apart in less dense areas, because there was lower demand. AP's earlier story follows below.ĭoorDash is capping a year of explosive growth with an initial public offering of its stock, hoping to keep the momentum going even if demand for food delivery eases in a post-pandemic world.ĭoorDash pulled ahead by concentrating on suburbs and smaller cities while its rivals stayed mainly in big cities, said Mark Shmulik, an analyst with Bernstein. The company hopes to keep the momentum going even if demand for food delivery eases in a post-pandemic world. That’s led to explosive growth for companies like DoorDash. Virus-induced lockdown orders and the closure of indoor dining have made meal delivery services indispensable for many restaurants and diners this year. The opening price valued the company which is trading under the symbol DASH, at around $58 billion. The shares opened at $182 after the San Francisco-based company priced them at $102 each late Tuesday. I declare that I do hold positions in DoorDash.DoorDash shares soared 78% as the meal delivery service made its debut Wednesday on the New York Stock Exchange. Currently the stock is at the low end of its 52-week range, and 50% below the 52 Wk avg, the stock is positioned for a spike after earnings on the 16th, and I believe it will continue to climb thereafter. I believe that the 1 year target of $212 is a conservative number. Curr Assets of $4.7B and Curr Payables of $700Mi, they are well positioned with strong capitalization, solid growth and sustainable cash flow. They are on track to reach $5B+ this year, that is over 30%-40% Y/Y. Looking at the financial position: at $33B Cap, it generated $3B Rev last year. I believe DoorDash has a better model and more effective value proposition. We are shifting our habits toward connivance. Thus, it will not be affected by the reopening of indoor dining, and/or laxing of mask mandates. ![]() It’s about conveniently getting anything I desire to eat that day/night delivered, without having to drive and pick it up. ![]() ![]() Its about convenience not substitution to a sit-down restaurant. When I stop by any fast foods, Coffee shops, restaurants…, I see DoorDash pickup space reserved for Dashers, and the list is growing constantly. The demand for DoorDash is built around convenience and growth. Personally, I view DASH favorably from two prospective, business model and financial position. In a day or two, the same investors will be jumping back in. I feel that the drop is a normal reaction from nervous investors trying to deal with the anxiety of interest rate hikes and inflation numbers. ![]()
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