In this post, I'll be taking a fundamental and technical approach to DoorDash (DASH), an American delivery & takeout platform. For more information on the company since its IPO, make sure to check out the post I uploaded in Dec. 2020 by clicking the chart below.
Disclaimer: This is not investment advice. This is for educational and entertainment purposes only. I am not responsible for the profits or loss generated from your investments. Trade and invest at your own risk.
Fundamentals - DoorDash has shown tremendous growth compared to its counterparts like GrubHub and UberEats, during the Covid pandemic. - In terms of meal delivery shares, DoorDash currently covers 57%. - Dashers - the deliverymen on DoorDash - are gig workers, but the Biden administration has signaled that they should be classified as employees - This would induce additional costs, and with DoorDash still not being a profitable company yet, this could negatively impact the stock's price. - While this company is still not profitable, their Q2 financials demonstrate great growth trajectory - Their increase in revenue isn't amazing, but the absolute value is quite high. - Their Gross Order Value (GOV) has been growing for 5 consecutive quarters.
Technical Analysis - The chart demonstrates that the stock is very volatile. - But ever since we tested the IPO price support in May, we have been in an uptrend, forming higher lows and higher highs. - The price is trading above the Exponential Moving Average (EMA) Ribbon - A break and close above $214 could lead this stock to retest its all time highs at $256
Institutional Investors - SoftBank holds the most stocks, owning 12.89% of the company (43.5m shares) - The runner up on the list is Sequoia Capital, with 11.66% - Tiger Global Management holds 3.23%, and Morgan Stanley Investment Management holds 3.13% - Among known hedge fund managers as well, the top holders on the list (by order) are: - Chase Coleman (Tiger Global Management) - Jim Simons (Renaissance Technologies) - Ray Dalio (Bridgewater Associates) - Ken Griffin (Citadel)
Conclusion DoorDash is a very interesting company with a business model proven successful by other companies overseas. It would be important to see the continuation in growth momentum and the company turning profitable in the next few years. Especially with a lot of institutional interest, this stock could definitely be added to your watchlist.
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They are going from Meal delivery service to instant access to your local grocer/supply store by API, in-store inventory. I have done a few pick ups in Randals, Pets Smart, Walgreens/CVS and go an ironing board delivered from Bed Bath and Beyond. They recently launched in Japan too, no patterns found yet.
Michael_Wang_Official
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@zignify, Thank you for commenting! I've seen great success with companies using the same business model overseas, and I think doordash also has potential to prove that it can turn profitable.