DoorDash, Inc. (DASH): A Bull Case Theory

We came across a bullish thesis on DoorDash, Inc. (DASH) on Make Money, Make Time’s Substack by Oliver | MMMT Wealth. In this article, we will summarize the bulls’ thesis on DASH. DASH was trading at $139.51 as of Sept 23^rd. DASH’s forward P/E was 67.57 according to Yahoo Finance.

DoorDash (DASH) a leader in the food delivery space is now undergoing a significant transformation and becoming a broader convenience provider. Going forward it plans to deliver not only food but almost everything like alcohol, beauty products, home improvement, and sports goods thus expanding its total addressable market.This change is crucial from a long-term perspective driving revenue growth substantially. Even though DoorDash hasn’t completed its expansion it has been successful in growing its revenue by 22.3% YoY which demonstrates strong demand for its offerings, the company’s enterprise value stands at $38.45 billion. Given DoorDash’s EBITDA growth of 164%, alongside its consistent revenue growth and potential for margin expansion the 2025 EV/Sales multiple comes in at 3.1x, and the EV/EBITDA multiple is projected at 19.1x seems reasonable.

DoorDash has been investing to ramp up its growth thus having a negative net profit margin standing at -6% despite this short-term margin pressure the company has the ability to grow its revenues and in the future its margins which are appealing in nature as a long term investment as over the next few years as its non-food categories gain traction and the transformation matures. Thus we can conclude that DoorDash remains a key player in the on-demand delivery sector, and its expanding market presence positions it well for future growth due to this the stock presents an attractive investment case with a promising risk/reward profile.

DoorDash, Inc. is also not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held DASH at the end of the second quarter which was 76 in the previous quarter. While we acknowledge the risk and potential of DASH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than DASH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.