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DoorDash - AI Stock Analysis
Analysis generated February 12, 2024
DoorDash is an American technology company that operates an online food ordering and food delivery platform. Founded in 2013, it is a platform that connects consumers with their favorite local and national businesses in more than 4,000 cities across the United States and Canada. The company has been riding the wave of increased demand for delivery services, a trend significantly accelerated by the COVID-19 pandemic as consumers looked for safer and more convenient ways to shop and dine.
Fundamental Analysis
DoorDash has shown impressive revenue growth in the last quarter with a total of $2.16 billion. This reflects a quarter-over-quarter increase of 1.45%, and a year-over-year increase of 27.22%, highlighting a consistent upward trajectory in terms of revenue generation. Net income for the last quarter was a solid $73 million, jumping 57.06% from the previous quarter and demonstrating substantial year-over-year growth of 75.25%. EBITDA also painted a positive picture, at $78 million for the last quarter, up 55.93% quarter-over-quarter and 69.41% year-over-year. These improvements in key financial metrics indicate healthy growth and an improved profitability outlook for the company. However, the recent trend of insiders selling stock could signal a lack of confidence among those closest to company operations.
Technical Analysis
The stock price of DoorDash currently stands at $119.47, representing a 14.73% increase over the past month and more than doubling with a 101.50% increase over the past year. This shows a bullish momentum in both short-term and long-term trends. The current SMA10 is 115.02, slightly above the previous SMA10 of 114.02, further confirming the potential for continued upward price movement. The Relative Strength Index (RSI) at 38.9 suggests the stock is neither overbought nor oversold, making it potentially attractive to investors looking for entry points in a bullish trend.
Alternative Data Analysis
Examining alternative data sets, DoorDash's job postings have decreased by 34% recently, indicating possible cost-cutting measures or a more efficient operational structure. However, the neutral sentiment among employees could imply an uncertainty within the workforce about the company's future direction. Conversely, customer acquisition trends are encouraging, with a 6% increase in web page visitors and a 17% rise in mobile app downloads over the past couple of months. This points to a growing customer base and could foreshadow increased revenues. Customer engagement on social media platforms indicates enhanced visibility and brand awareness, with followers on Instagram increasing by 4%, although Twitter followers have seen no significant change.
Conclusion and Recommendation
Bearing in mind the fundamental strength in revenue, net income, and EBITDA, along with the bullish technical indicators and the optimistic customer acquisition and engagement trends, DoorDash appears to be in a strong position for growth. Nevertheless, the decrease in job postings and insider stock sales could merit caution. Investors should weigh these considerations against their investment thesis, risk tolerance, and market conditions. Based on the combined data, the recommendation would be to consider taking a moderately bullish stance on DoorDash, with close monitoring of insider trading activity and workforce morale as potential indicators of underlying challenges.
