Should you buy DoorDash stock? (January 2024)

See more at https://www.3minutebreakdowns.com DoorDash stock analysis. Ticker: $DASH Food delivery company Doordash has had a promising 12 months. The stock has advanced by 92% taking the market cap to 38 billion dollars. Revenue over the last 12 months has increased 34% to 8.2 billion and free cash flow has jumped to 900 million. But a significant amount of stock based compensation means the company is still not profitable with a net loss of roughly 1 billion dollars. Losing money is understandable since Doordash is attempting to outpace rivals. There is enormous competition in this space from Uber Eats, Instacart, Deliveroo, Just East and Delivery Hero. In the latest quarter, Deliveroo grew total orders by 3%, Instacart grew 6% and Just Eat saw a 7% decline. Meanwhile, total orders on Doordash grew 24% and Uber delivery grew 18%. So Doordash’s strategy is working and a duopoly appears to be developing alongside Uber. For a platform business like DoorDash, revenue growth is extremely important because each dollar of additional revenue leads to a higher increase in profit. This can be seen in the financials. For example, in the latest quarter, revenue grew 27% but EBITDA increased at a much higher rate, almost 300%. #investing #stocks #stockstobuy