3. DoorDash Inc. (NASDAQ:DASH)
Number of Hedge Fund Holders: 67
DoorDash Inc. (NASDAQ:DASH) is a technology company that primarily provides restaurant food delivery services. Operating in more than 30 countries across the globe, DoorDash connects consumers with thousands of restaurants, convenience stores, pet stores, grocery stores, and more. It is the largest food delivery platform in the US.
Additionally, the company offers a convenient service called Package Pickup, allowing customers to request a Dasher to collect their prepaid packages from home and deliver them to local carriers like UPS, FedEx, and USPS.
DoorDash Inc. (NASDAQ:DASH) is focused on expanding its marketplace and enhancing local commerce in the US by adding tens of thousands of new merchants across diverse categories like groceries, beauty products, alcohol, sporting goods, and home improvement. In Q2 2024, the company introduced features that improve personalization and streamline the ordering process, which helped drive a significant increase in monthly active users in the US.
Over the past 2 years, the company has expanded its international operations to 4 new countries and more than 500 new cities. DoorDash Inc. (NASDAQ:DASH) has successfully expanded internationally while maintaining strong consumer retention rates, indicating that its product experience resonates well with users.
In the second quarter of 2024, DoorDash Inc. (NASDAQ:DASH) achieved impressive financial results, setting new records for total orders, Marketplace Gross Order Value (GOV), and revenue. The company reported a 23% year-over-year increase in revenue, reaching $2.6 billion, while total orders rose by 19% to 635 million. Additionally, the Marketplace GOV increased by 20% to $19.7 billion. This marks the tenth consecutive quarter where revenue growth outpaced that of Marketplace GOV, showcasing the company’s continued strength in the competitive food delivery market and its effective strategies to expand beyond traditional offerings.
DASH ranks among the top 3 on our list of the best delivery stocks to invest in now. As of the second quarter of 2024, DoorDash Inc. (NASDAQ:DASH) was held by 67 hedge funds, according to Insider Monkey’s database. TimesSquare Capital Management stated the following regarding DoorDash Inc. (NASDAQ:DASH) in its “U.S. Mid Cap Growth Strategy” second-quarter 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.”
