10 Best Gig Economy Stocks To Buy

3. DoorDash, Inc. (NASDAQ:DASH)

Number of Hedge Fund Holders: 67

DoorDash, Inc. (NASDAQ:DASH) operates a commerce platform through which merchants, consumers, and independent contractors can connect for delivery services. It is based in San Francisco, California.

This food delivery giant has generated stellar results in the second quarter, with Marketplace Gross Order Value coming in at $19.7 billion, exceeding management’s guidance. Revenue for the quarter was up 23% year-over-year at $2.6 billion. These financials have been primarily achieved because of DoorDash, Inc.’s (NASDAQ:DASH) commitment to improving its platform’s efficiency and user experiences, which have helped it drive consumer and merchant growth.

Despite this, some are concerned about the challenges DoorDash, Inc. (NASDAQ:DASH) is facing. The company is currently dealing with higher legal and regulatory expenses, which has led to it reporting a net loss of $158 million in the second quarter. With this, many are worried that DoorDash, Inc. (NASDAQ:DASH) may not be able to retain much of the cash it generates to invest in its own business model.

However, the company is working on international expansion, and it has recently entered four new countries and over 500 new cities through this scheme. DoorDash, Inc. (NASDAQ:DASH) also improved its free cash flow generation in the second quarter, which came in at $451 million, compared to $311 million in the same quarter a year ago. These factors have been effective in alleviating many investors’ concerns surrounding the stock.

DoorDash, Inc. (NASDAQ:DASH) had 67 hedge funds long its stock in the second quarter, with a total stake value of $3.2 billion.

TimesSquare Capital Management mentioned DoorDash, Inc. (NASDAQ:DASH) in its second-quarter 2024 investor letter:

“Our preferences in the Consumer-oriented sectors lean toward value-oriented or specialty retailers, franchise models, or premium brands. New to the strategy was the online food delivery platform and logistics provider DoorDash, Inc. (NASDAQ:DASH) Since its IPO in 2021, the company’s scale has grown to entrench it with customers and consumers, though we have been cautious about its high valuation. Recently, the company reported lower-than-expected guidance for future margins and that caused its shares to sell off. In our view, DoorDash was appropriately investing for future growth and absorbing recent increased wage costs. Believing this short-term price dislocation made for an attractive entry price, we began buying, and DoorDash was up 2% through the end of the quarter.”