See our analysis DoorDash Stock Chance of Rise for more details.įive Days: DASH 4%, vs. So is DASH stock likely to rise further in the coming weeks and months or is a correction looking more likely? Per the Trefis machine learning engine which analyzes historical stock price movements, DASH stock only has a 46% chance of a rise over the next month (21 trading days). is poised to cool off with Covid-19 restrictions being eased.
The deal could help to speed up DoorDash’s international expansion and drive revenue growth as broader delivery volumes growth in the U.S. 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. See our analysis DoorDash Valuation: Expensive Or Cheap? for more details on DoorDash’s valuation.īelow you’ll find our previous coverage of DoorDash stock where you can track our view over time. We value the stock at about $130 per share, about 13% below the current market price. That said, we still think the stock is a bit pricey at current levels, due to the fact that the company remains unprofitable despite its massive growth through the pandemic. This could help drive market share gains, as DashPass subscribers are typically more engaged and loyal. Separately, the company is seeing growing adoption of its DashPass subscription service, holding about 9 million DashPass subscribers as of Q3 2021, up from levels of around 5 million last year. Demand for DoorDash’s services could rise in the near term if the highly transmissible new virus strain results in renewed lockdowns and travel restrictions, which could, in turn, make more people order in rather than go to restaurants. So is DoorDash stock a buy? There are a couple of positive factors that could drive DoorDash stock. have averaged about 127,000 as of last week, up from levels of around 70,000 in late November, driven by the spread of the apparently more infectious Omicron variant of the novel coronavirus.
Moreover, the broader markets have also been weighed down by the recent rise in Covid-19 cases. For perspective, DoorDash trades at about 10x projected 2021 revenues. This is likely causing investors to reduce exposure to high-growth, high multiple stocks such as DoorDash which were big winners earlier in the pandemic and through the ultra-low interest rate era. Federal Reserve officials have hinted that we could see as many as three rate hikes coming in 2022, as inflation in the U.S. So what’s driving the current sell-off? The U.S. DoorDash stock (NYSE: DASH) has declined by about 5% over the past week and remains down by almost 40% from its early November highs.
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