DoorDash Is Down 40%, Here's Why It Still Isn't a Buy

Stocks of U.S. food delivery leader DoorDash (NYSE: DASH) hit an all-time high of $257 in November, shortly after it announced the $8.1 billion acquisition of Wolt, an international last-mile delivery company. But the lofty gains were short-lived, with the stock falling by 40% in the last month alone. 

DoorDash was a market darling during the pandemic, as the stay-at-home economy drove a surge in demand for food delivery services. Restaurants needed customers, and consumers wanted their favorite foods, so DoorDash was critical in bridging that gap.

But a notable deceleration in the company's growth rate suggests it likely won't see such a perfect operating environment ever again. Therefore, despite a hefty decline, its stock still might be too expensive. 

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Source Fool.com