What Makes DoorDash (DASH) an Attractive Bet?

Parnassus Investments, an investment management company, released the “Parnassus Growth Equity Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the Fund (Investor Shares) returned 4.85% (net of fees) underperforming the Russell 1000 Growth Index’s 7.07% gain. For the year, the fund returned 26.85% compared to Russell 1000 Growth’s 33.36% return. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, Parnassus Growth Equity Fund emphasized stocks such as DoorDash, Inc. (NASDAQ:DASH). DoorDash, Inc. (NASDAQ:DASH) is a commerce platform that connects merchants, consumers, and independent contractors. The one-month return of DoorDash, Inc. (NASDAQ:DASH) was -5.73%, and its shares gained 39.41% of their value over the last 52 weeks. On March 19, 2025, DoorDash, Inc. (NASDAQ:DASH) stock closed at $190.66 per share with a market capitalization of $80.096 billion.

Parnassus Growth Equity Fund stated the following regarding DoorDash, Inc. (NASDAQ:DASH) in its Q4 2024 investor letter:

“In Consumer Discretionary, we sold LVMH Moet Hennessy Louis Vuitton, which faces a potentially prolonged economic recovery in China, one of its major markets. With the proceeds, we bought food delivery company DoorDash, Inc. (NASDAQ:DASH).

DoorDash holds a dominant market share, supported by a vast network of delivery people and merchants. DoorDash has strong topline and margin growth prospects for the next few years, driven by increases in gross order value, improvements in its take rate from ad monetization and expansion into new verticals like grocery.”

DoorDash, Inc. (DASH): Among Top Insider Sales Last Month

A shot of a delivery driver zooming down a busy street, symbolizing the company’s quick and efficient delivery services.

DoorDash, Inc. (NASDAQ:DASH) is in not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 88 hedge fund portfolios held DoorDash, Inc. (NASDAQ:DASH) at the end of the fourth quarter which was 73 in the previous quarter. While we acknowledge the potential of DoorDash, Inc. (NASDAQ:DASH) as an investment, our conviction lies in the belief that 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 as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed DoorDash, Inc. (NASDAQ:DASH) and shared the list of high growth low debt stocks to invest. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

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