Is DoorDash Stock a Buy?
Former underdog DoorDash (NYSE: DASH) may have achieved top-dog status in record time. According to the company, it only had 17% of the delivery market in Jan. 2018. By Oct. 2020, its market share had risen to 50%. This rapid ascent is a big reason why investors love this stock so much.
Demand for DoorDash stock has been epic. The company originally planned to price its initial public offering (IPO) between $75 and $85 per share, but the IPO eventually priced at $102 before its first day of trading carried it to almost $190. As of this writing, shares trade at around $200 per share.
Through the first three quarters of 2020, DoorDash registered a net loss of $149 million. But investors appear indifferent toward these steep losses since they're willing to envision this company as the premier delivery-logistics network with broad application globally. There's merit to this thesis, but there's also good reason to temper this rosy outlook with realistic expectations.
Source Fool.com
