Is DoorDash Stock a Buy?
DoorDash (NYSE: DASH) made a huge splash late last year with its IPO. The company raised $3.4 billion in fresh cash, and shares soared on the first day of trading. But things have calmed down following the fourth quarter 2020 report card, which indicated activity on its apps will drastically moderate this year as vaccines roll out and effects of the pandemic start to ease.
Though the stock is now down 25% from where it debuted in public trading, I'd exercise caution before jumping in, even at these levels.
It's easy to see why some investors are excited about DoorDash. In its fourth-quarter update (its first as a public concern), DoorDash reported a 226% year-over-year increase in revenue to $970 million. Adjusted EBITDA was $94 million, compared to a loss of $104 million in the year-ago period. As a percentage of gross order value (GOV), EBITDA profit margins were 1.1% in the quarter compared to negative 4.1% the year prior.
Source Fool.com
