So is DoorDash stock a buy at current levels? DoorDash trades at about 6x projected 2022 revenues, which is well below the 16x forward revenue multiples the stock traded at in 2021. The move could help the company better retain drivers at a time when high inflation and a tight labor market are weighing on major gig economy players. Moreover, last week DoorDash started offering a 10% cash back program for fuel purchases by its drivers to help them offset higher fuel costs while indicating that customers won’t bear the higher costs. For perspective, DoorDash grew revenue by about 34% in Q4 2021 and the company projects that its marketplace gross order value will grow by as much as 20% to between $48 billion and $50 billion in 2022. Firstly, DoorDash stock has taken a beating in recent months, falling by 25% year-to-date, and by over 55% from its all-time highs of mid-2021, and investors are now seeing more value in the company, which is actually seeing demand for food delivery hold up pretty well, despite the Covid-19 reopening. While tech stocks, in general, fared well over the last week, with the Nasdaq-100 soaring 9% as the Federal Reserve raised interest rates by just a quarter percentage point, in line with market expectations, DoorDash stock saw considerably more buying interest for a couple of reasons. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Imagesįood delivery player DoorDash stock (NYSE: DASH) surged by close to 40% over the last week (five trading days), trading at levels of around $107 on Monday. company is seen on a smartphone and a pc screen. UKRAINE - 0: In this photo illustration the DoorDash logo of an US online food ordering.
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