DASH - DoorDash Delivered More Than Food and Groceries in the Latest Quarter but Here's Why Its Stock Sank
2024-05-08 07:07:00 ET
DoorDash (NASDAQ: DASH) stock came public at the end of 2020 at $102 per share. The initial public offering (IPO) was perhaps slightly opportunistic, considering its food delivery business was benefiting greatly from pandemic-era lockdowns and social restrictions.
The company was consistently delivering triple-digit-percentage growth in its revenue, so it's no surprise the stock soared to an all-time high of $246 in less than a year following its IPO. But conditions have since changed, and they are no longer as favorable for DoorDash despite it remaining the most popular food delivery platform in America with a 67% market share.
DoorDash stock is now trading 52% below its all-time high, amid a significant deceleration in its revenue growth as the company focuses on managing costs to achieve profitability. It made significant progress during the recent first quarter of 2024 (ended March 31), so why did investors send its stock tumbling following the results?
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DoorDash Delivered More Than Food and Groceries in the Latest Quarter, but Here's Why Its Stock Sank