Why DoorDash (DASH) Stock May Continue to Rise After Last Week Bottom

The food delivery business has grown into a multibillion-dollar industry over the past few years and DoorDash Inc (NYSE: DASH) is one of the major players in the industry.

In December 2020, the company had its IPO but like many other tech unicorns lately, it proved to be a disappointment. Since its IPO, the DoorDash stock has declined by as low as 30%. While the decline has been disappointing, it is also important for investors to figure out if this could be an opportunity.

In this regard, it is necessary to mention that the stock has stabilized somewhat since March and has been trading flat. On the other hand, despite being a loss-making operation, DoorDash has continued to clock higher revenues. In 2019, revenues stood at $900 million but last year, the revenues soared to as much as $3 billion. Hence, it can be argued that the company knows what it is doing. The coronavirus pandemic may have helped in the revenue growth last year but it is also true that the new customers that the company gained could continue to stick around.

Michael Rowels

Weekend Contributor.Writing for business and finance publishers has become his passion over the last decades after he completed a master's degree in Financial Management. Sharing some opinions and forecasts to thousands of readers is a routine job for him but he never promises to invest in one stock.

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