![]() ![]() MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and DoorDash wasn’t on the list. MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Should you invest $1,000 in DoorDash right now?īefore you consider DoorDash, you’ll want to hear this. This provides exit opportunities are $77.79, $81.87 and $87.66, which is the 1.618 PRZ. ![]() The PRZs are based on the Fibonacci (fib) extensions 1.27, 1.414 and 1.618 or 127%, 141.4% and 161.8%, respectively, from the low of the first MSL to the high. PRZs enable investors to sell into the strength rather than stop out on the weakness. These PRZs make for good exit points before the stock reverses back. A seed wave is a powerful breakout pattern with defined potential reversal zones (PRZs). The breakout through the prior $70.13 high triggered a seed wave formed after two consecutive and higher MSL trigger breakouts. After a pullback to the $51.50 level, DASH triggered a second higher MSL buy trigger at $61.78. It staged a rally on the weekly market structure low (MSL) buy trigger at $58.05 to a high of $70.13 in February 2023. The weekly candlestick chart for DASH shows a nice recovery from the $41.37 lows made in October 2022. It’s also growing its international business, seeing robust growth opportunities.ĭoorDash analyst ratings and price targets are at MarketBeat. (NYSE:LOW) It also offers home services like house cleaning, dog walking and laundry. (NYSE:TGT), essential home products from Home Depot Inc. (NYSE: CVS), pet supplies, gifts from stores including Walmart Inc. Expanding OfferingsĭoorDash is expanding into other areas and new categories for delivery services, including groceries, pharmacy from CVS Health Co. Future earnings beats may already be priced into shares. Gordon Haskett analysts point out that the restart of student loan repayments in September 2023 will be a true test of the elasticity of the model when nearly 27 million consumers have to adjust their discretionary budgets to afford loan repayments. On June 14, 2023, Gordon Haskett downgraded shares of DASH to a Hold from Buy and a $72 price target, down from $73. Surprisingly, the uncertain economic backdrop hasn’t hurt DoorDash’s growth as it continues to drive higher revenues. Adding in the premium pricing, delivery fees and tips, DoorDash food delivery can cost up to 50% more than ordering in the restaurant. Gordon Haskett’s research has revealed that restaurant menu prices tend to be higher when ordered through the DoorDash app. Gross order volume (GOV) grew 29% YoY to $15.9 billion, beating prior guidance of $15.1 to $15.5 billion. Its Adjusted EBITDA rose 278% YoY to $204 million versus $120 to $170 million consensus analyst estimates. The company lost ($0.48) per share in its Q1 2023 earnings report but grew revenues 39.8% YoY. campaign to justify its payout policies for its drivers and goes out of its way to promote merchant and customer satisfaction polls. Despite growing to be the largest food delivery app in the U.S., it has yet to turn a profit. One would assume that such an asset-light business should be wildly profitable. Profit-LessĭoorDash is a middleman that facilitates transactions and takes a cut of the transaction. DoorDash doesn’t pay a salary or minimum wage, nor pay for the maintenance and expenses for delivery drivers. It’s a very simple asset-light business plan. Meanwhile, DoorDash has built up its network of restaurants and bulked up its supply of independent drivers. Customers order food from the establishments, and drivers deliver the food to the customers. (NASDAQ:UBER) owned delivery services Uber Eats and PostMates, the second largest delivery services in the country.ĭoorDash operates a delivery platform that connects customers with restaurants and “independent” drivers. The company competes with Uber Technology Co. That’s impressive, except that it can’t earn GAAP profits. The company grew revenues by almost 40% and its market share to nearly 65% of the food delivery market. This introduced DoorDash to millions of new users and accelerated their growth, which has yet to experience normalization due to the stickiness and convenience of its app. DASH shares at up 61% year-to-date (YTD) and a 5.3% short interest.DoorDash is expanding its categories for delivery to include groceries, pharmacy, gifts and home products, as well as home services like housecleaning, laundry and dog walking.Student loan payments resuming in Q3 2023 may cause students to cut back on delivery services. ![]() Its revenues grew 39.8% in Q1 2023, but it still can’t generate a profit with a GAAP loss of ($0.48).DoorDash is the largest online food delivery company in the U.S., with a 65% market share. ![]()
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