DoorDash's Sprint Into New Markets Should Deliver High Growth in a Post-Pandemic World
When DoorDash (NYSE: DASH) stormed onto the scene last December through its highly successful IPO, the stock immediately became a darling among growth-oriented investors. At the time, the country's largest food delivery company was viewed as a poster child for businesses that benefited from stay-at-home practices and government-imposed restrictions.
The acceleration in DoorDash's growth was spectacular. Revenue surged by 30% on a sequential basis to $879 million for the quarter ending September 30, 2021. In the year-earlier quarter, revenue increased by a much more modest 11% to $239 million.
Image Source: Getty Images
Similar to how the pandemic steered consumers who were previously uneasy about shopping online toward e-commerce platforms, the pandemic opened the door to food delivery services to many new users.
This is evidenced by total orders skyrocketing by 200% year-over-year to 543 million for the nine months ended September 30, 2020.
However, it didn't take long for the awe over these metrics to transform into angst due to the prospects of lower growth looming in a post-pandemic world. Just as quickly as investors stampeded to DoorDash's IPO, investors abandoned the stock when the picture became murkier. This rush to exit the stock seems rash, though, because the company still has powerful growth levers to pull.
Source Fool.com
