Opinions
Jim Cramer - Mad Money
Doordash
DASH-N
DON'T BUY
Dec 18, 2020
$166.350
Stock price when the opinion was issued
food services
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DON'T BUY
Wall Street has left certain "pandemic" stocks for dead. It fell from $250 to below $75 then bounced to $127. He has high hopes for the company long term, but it is losing money. So, he can't recommend his stock. The stock is still pricey and it's losing money. Many restaurants will still use Doordash, though.
food services
BUY
It had a strong run in 2021, but has lost 78% of its value from the peak. DASH last week reported a super quarter; gross order value was up 25% YOY. People are continuing to order food delivered to their homes and this won't go away. Wall Street worries that DASH could get hit in a recession.
food services
BUY
Last week, they reported a beat on every line item, including 23% revenue growth YOY and total orders 91% YOY, with improved guidance. From the pandemic, people are used to using food delivery apps, given order frequency and customer retention, while digital penetration is growing including their monthly subscription.
food services
The $53 billion valuation may be too high. Maybe after we all get vaccinations, people may return to restaurants and use DD less, or we could get used to DD food delivery. Even if they everything goes right for them, it isn't worth this valuation. Also, its competitors like GrubHub are smart.