DASH - Hitting Bottom And Bound To Dash Higher: Initiating DoorDash With A Buy
2024-05-10 17:43:32 ET
Summary
- I am initiating DoorDash with a buy rating after last week's massive pullback post-earning results.
- In my opinion, DoorDash's solid fundamentals and efforts to become a "one-stop shop" position it to show upside surprise in FY2024.
- Dash is down over ~11% since reporting 1Q24 earning results last week.
- I share my thoughts on Dash stock here and why I think it has bottomed and is better equipped to outperform in 2024.
Investment Thesis
DoorDash ( DASH ) announced its first quarter of FY2024 results at the beginning of the month. The company beat revenue estimates but missed EPS estimates. The stock sold off after earnings and is down over 18% over the last month, as shown in the graph below. I understand investors are worried about the 2Q24 outlook regarding “significant levels of ongoing investment in new categories and international markets." But I think these investments will pay off big time and pave the next leg of growth for Dash....
Hitting Bottom And Bound To Dash Higher: Initiating DoorDash With A Buy