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. Asset-LightĭoorDash operates a delivery platform that connects customers with restaurants and "independent" drivers. ![]() (NASDAQ: UBER) owned delivery services Uber Eats and PostMates, the second largest delivery services in the country. 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. DoorDash is a hypergrowth story that accelerated through the pandemic as stay-at-home mandates forced people to order restaurant takeout and groceries online. While it's still trading well below its all-time high of $257.25, achieved in November 2021, investors may use the recovery to consider ringing the register. (NASDAQ: DASH) shares have climbed 61% in 2023.
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